The Commissioner of Income, Chennai v. Kannappan Iron and Steel Co Pvt. Ltd
|The Commissioner of Income, Chennai
|Kannappan Iron and Steel Co Pvt. Ltd.
|HIGH COURT OF MADRAS
|Date of Order
|expenditure incurred • monetary limit • tax effect
|In Order in TCA No.794 of 2013 dated 04.06.2020 Bench, Chennai, by raising the following substantial questions of law: 1. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the expenditure incurred on product development is revenue in nature and not capital 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal has enough material to conclude that the expenditure was revenue allowable under Section 37 of the Income Tax Act 2. When the matter was taken up for hearing, the learned Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue is dismissed as not pressed, keeping open the substantial questions of law for determination in an appropriate case.