Commissioner of Income-tax-I, Coimbatore v. Elgi Ultra Industries Ltd
[Citation -2020-LL-0615-24]
| Citation | 2020-LL-0615-24 |
|---|---|
| Appellant Name | Commissioner of Income-tax-I, Coimbatore |
| Respondent Name | Elgi Ultra Industries Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 15/06/2020 |
| Assessment Year | 2006-07 |
| Judgment | View Judgment |
| Keyword Tags | substantial question of law • books of accounts • monetary limit • low tax effect • written off • bad debt |
| Bot Summary: | 1267/Mds/2009 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2006-07. For Appellant: Mr.T.R.Senthilkumar, SSC Ms.K.G.Usharani, SC For Respondent: Mr.Arun Prasad Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel and Ms.K.G.Usharani, learned Standing Counsel appearing for the appellant Revenue and Mr.Arun Prasad, learned counsel appearing for the respondent. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 20.11.2009 made in ITA.No. The appeal has been admitted on 07.6.2010 on the following substantial question of law : Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in allowing the bad debts written off in the books of accounts, even though the conditions laid down under Section 36(1)(vii) read with Section 36(2) were not satisfied by the assessee 4. The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. |