The Commissioner of Income, Chennai v. Kannappan Iron and Steel Co Pvt. Ltd
[Citation -2020-LL-0604-14]

Citation 2020-LL-0604-14
Appellant Name The Commissioner of Income, Chennai
Respondent Name Kannappan Iron and Steel Co Pvt. Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 04/06/2020
Judgment View Judgment
Keyword Tags expenditure incurred • monetary limit • tax effect
Bot Summary: 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.


Order in TCA No.794 of 2013 (CIT -Vs- M/s.Kannappan Iron & Steel) dated 04.06.2020 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.06.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.794 of 2013 Commissioner of Income Chennai. ... Appellant Vs. M/s.Kannappan Iron and Steel Co Pvt Ltd 9/110, Kalidas Road, Ramnagar Coimbatore - 641 009. .. Respondent Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against common order of Income Tax Appellate Tribunal 'D' Bench, Chennai dated 12.12.2011 in ITA No.1600/Mds/2011. For Appellant : Ms.K.G.Usha Rani, Junior Standing Counsel For Respondent : Notice Served JUDGMENT (Judgment of Court was delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by Revenue calling in question correctness of order passed by Income Tax Appellate Tribunal, 'D' Page 1 of 4 http://www.judis.nic.in Order in TCA No.794 of 2013 (CIT -Vs- M/s.Kannappan Iron & Steel) dated 04.06.2020 Bench, Chennai, by raising following substantial questions of law: 1. Whether on facts and circumstances of case, Income Tax Appellate Tribunal was right in holding that expenditure incurred on product development is revenue in nature and not capital? 2. Whether on facts and in circumstances of case, Income Tax Appellate Tribunal has enough material to conclude that expenditure was revenue allowable under Section 37 of Income Tax Act? 2. When matter was taken up for hearing, learned Standing Counsel brought to our notice Circular instruction issued by 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 Department before High Court in cases where tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In instant case, tax effect is said to be less than monetary limit imposed and therefore, appeal filed by Revenue is dismissed as not pressed, keeping open substantial questions of law for determination in appropriate case. (V.K.,J.) (R.S.K.,J.) Page 2 of 4 http://www.judis.nic.in Order in TCA No.794 of 2013 (CIT -Vs- M/s.Kannappan Iron & Steel) dated 04.06.2020 04.06.2020 KST To Income Tax Appellate Tribunal 'D' Bench,Chennai. Page 3 of 4 http://www.judis.nic.in Order in TCA No.794 of 2013 (CIT -Vs- M/s.Kannappan Iron & Steel) dated 04.06.2020 DR.VINEET KOTHARI, J. AND R.SURESH KUMAR, J. KST T.C.(A) No.794 of 2013 04.06.2020 Page 4 of 4 http://www.judis.nic.in Commissioner of Income, Chennai v. Kannappan Iron and Steel Co Pvt. Ltd
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