Commissioner of Income-tax, Chennai v. Shriram Retail Holdings Private Limited (Since Amalgamated with Shriram City Union Finance Ltd.)
[Citation -2020-LL-0812-1]
| Citation | 2020-LL-0812-1 |
|---|---|
| Appellant Name | Commissioner of Income-tax, Chennai |
| Respondent Name | Shriram Retail Holdings Private Limited (Since Amalgamated with Shriram City Union Finance Ltd.) |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 12/08/2020 |
| Judgment | View Judgment |
| Keyword Tags | earning exempt dividend • exempt dividend income • investment activity • forfeited amount • book profits • capital loss |
| Bot Summary: | 1.Whether on the facts and in the circumstances of the case the tribunal was right in holding that assessee is entitled for deduction u/s 14A and directing the assessing officer to re-examine the issue of disallowing of expenditure u/s 14A r/w r 80 in the light of the investment activity and directed to consider the expenditure from the assessee's business object and activity while computing the disallowance u/s. Whether on the facts and in the circumstances of the case the tribunal was right in holding that the assessee is eligible for the claim of short term capital loss with respect to the forfeited amount spent for acquiring the right to purchase the shares and even though the assessee had not acquired any capita asset I shares. Heard Mr.J.Narayanaswamy, learned counsel for the appellant Revenue and Mr.R.Sivaraman, learned counsel for the respondent assessee. It is submitted by the learned counsel for the respondent Assessee that the matter stood remanded back by the learned Tribunal to the Assessing Authority with regard to the issues under Section 14A of the Act as well as calculating book profits under Section 115JB of the Act and upon such remand, the Assessing Authority has passed fresh orders on 29.06.2017 and against the said order of the Assessing Authority, an appeal was filed before the appellate authority and the same was also dismissed vide order dated 31.01.2019 and therefore, the matter is again pending before the learned Tribunal for the second round of litigation. Learned counsel for the appellant Revenue however sought to submit that Question No.3 was not remitted back to the Assessing Authority and the findings of the learned Tribunal to exclude the addition under Section 14A of the Act while computing book profits under Section 115JB of the Act, is against the Revenue and is contrary to the provisions of the Act. Learned counsel for the respondent Assessee submitted that these issues have also been decided by the lower authorities against the Assessee and the matter is at large before the learned Tribunal. We are of the opinion that the present appeal filed by the Revenue has become infructuous and since all the issues are open and at large to be argued again before the learned Tribunal in the second round of litigation as aforesaid, we decline to answer the questions involved in this appeal at this stage, leaving it free for the parties to agitate the matter again before the learned Tribunal. |