Commissioner of Income-tax, Chennai v. Gandhimathi Appliances Ltd
[Citation -2020-LL-0813-3]
| Citation | 2020-LL-0813-3 |
|---|---|
| Appellant Name | Commissioner of Income-tax, Chennai |
| Respondent Name | Gandhimathi Appliances Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 13/08/2020 |
| Judgment | View Judgment |
| Keyword Tags | market development expenses • profit and loss account • monetary limit • tax effect |
| Bot Summary: | 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, C Bench, ITA No.944/Mds/2013 by raising the following substantial questions of law: 1. Whether in the facts and circumstances of the case, the Tribunal was right in law in deleting the addition made towards market development expenses to the extent of RS.2. 20 crores out of the total claim of Rs.5.01 crores as against the actual debit of Rs.94.56 lakhs in the profit and loss account and directing the Assessing Officer to verify the remaining portion of RS.2. 81 crores in the light of the ratio laid down in the case of MIs. Whether in the facts and circumstances of the case, the Tribunal was right in law in holding the assessee is eligible for the claim of Rs.2.20 crores as against Rs.94.56 lakhs debited in the profit and loss account without any evidence in support of its claim of Rs.2.20 crores for incurring the expenditure in the year under consideration 3. 266 of 2015 C.I.T vs. Gandhimadhi Appliances Ltd. 3/4 Rs.5.01 crores claimed in its returns 3. 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is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. |