Principal Commissioner of Income-tax 2, Chennai v. Indowind Energy Ltd
[Citation -2020-LL-0707-7]
| Citation | 2020-LL-0707-7 |
|---|---|
| Appellant Name | Principal Commissioner of Income-tax 2, Chennai |
| Respondent Name | Indowind Energy Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 07/07/2020 |
| Assessment Year | 2008-09 |
| Judgment | View Judgment |
| Keyword Tags | purchase of land • monetary limit • low tax effect • written off • book profit • bad debt |
| Bot Summary: | PAN : AAACI1806M ... Respondent Tax Case Appeal is filed under Section 260A of the Income Tax Act 1961 against the order dated 25.10.2016 made in I.T.A.No. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 25.10.2016 made in I.T.A.No. 1824/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras B Bench, for the assessment year 2008 - 09. The Tax case appeal was admitted on 28.08.2018 on the following substantial questions of law : Whether in the facts and circumstances of the case and in law, the ITAT was correct in allowing the bad debt written off on account of advance made for the purchase of land to M/s.Wipro Finance Ltd. when the assessee is not into the business of real estate and Whether the ITAT was correct in allowing higher claim of depreciation while calculating the book profit under Section 115JB of the Act, when the assessee had not disclosed by way of a note forming part of annual accounts as specified in Circular No.2/89/No. The learned 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. |