Commissioner of Income-tax, Chennai v. J.M.Bottling (P) Ltd
[Citation -2020-LL-0805-1]
| Citation | 2020-LL-0805-1 |
|---|---|
| Appellant Name | Commissioner of Income-tax, Chennai |
| Respondent Name | J.M.Bottling (P) Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 05/08/2020 |
| Judgment | View Judgment |
| Keyword Tags | monetary limit • tax effect • revenue expenditure |
| Bot Summary: | Order dt.05.08.2020 in T.C.A.No. For appellant : Mr.Karthik Ranganathan, Sr.Standing Counsel ORDER The Court was held by Video Conference, as per the Resolution of the Full Court dated 3 July 2020, by Judges at their respective residence and the counsel, staff of the Court appearing from their respective residences. In Order dt.05.08.2020 in T.C.A.No. This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras B Bench, in ITA No.1639/Mds/2002 by raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in in holding that the sum of Rs.1 crore paid by the assessee to M/s J.M. Beverages Ltd. on termination of its agreement with the said company should be allowed as revenue expenditure 3. When the matter is taken up for hearing, learned Standing Counsel brought to our notice the Circular 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is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. Registry is directed to send a copy of the judgment to the respondent/ assessee. |