THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.509 & 510 of 2018 Commissioner of Income Tax,allowed

 

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[8/9, 08:48] Sekarreporter 1: TCA Nos.509 & 510 of 2018
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07.07.2020
CORAM:
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN
Tax Case Appeal Nos.509 & 510 of 2018
Commissioner of Income Tax,
Corporate Circle – 3,
Chennai. .. Appellant in both TCAs
versus
M/s.Tamilnadu Industrial Development
Corporation Limited,
No.19-A, Rukmini Lakshmipathy Road,
Egmore, Chennai – 600 008. .. Respondent in both TCAs
Tax Case Appeals filed under Section 260A of the Income Tax
Act, 1961, against the common order made in ITA Nos.691 &
692/Mds/2017 dated 12.07.2017 passed by the Income Tax Appellate
Tribunal ‘D’ Bench, Chennai, for the Assessment Years 2011-12 and
2012-13.
For Appellant : Mr.M.Swaminathan
in both TCAs Senior Standing Counsel
Assisted by Mrs.V.Pushpa
Standing Counsel
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[8/9, 08:49] Sekarreporter 1: TCA Nos.509 & 510 of 2018
For Respondent : Mr.R.Vijayaraghavan, Sr. Counsel
in both TCAs
COMMON JUDGMENT
T.S.SIVAGNANAM, J.
These appeals have been filed by the revenue under Section 260A
of the Income Tax Act, 1961 (the ‘Act’ for brevity), challenging the
common order passed by the Income Tax Appellate Tribunal ‘D’ Bench,
Chennai, in ITA Nos.691 & 692/MDS/2017 dated 12.07.2017, for the
Assessment Years 2011-12 and 2012-13.
2. The Tax Case Appeals were admitted on 21.06.2019 on the
following Substantial Questions of Law.
“1. Whether the Tribunal was right in holding that the strategic
investments of the assessee capable of fetching exempt income do not
attract disallowance u/s 14A even though the Section 14A read with
Rule 8D does not differentiate the investments as strategic or non-
strategic?
2. Whether the Tribunal was right in observing that the
Assessment Officer has not satisfied the mandatory requirement of
Section 14A(2)?”
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[8/9, 08:49] Sekarreporter 1: TCA Nos.509 & 510 of 2018
managerial aspect so that the same shall be disallowed in the
computation of income, but has not issued any specific directions to the
Assessing Officer as to what has to be done after the assessee files the
working sheet. Therefore, to that extent the tribunal has committed an
error. Hence, we are of the considered view that the matter should be
remanded for fresh consideration of the Assessing Officer in accordance
with law.
22. For the above reasons, the Tax Case Appeals are allowed and
the Substantial Questions of Law are answered in favour of the revenue
and the matters for both the Assessment years viz., 2011-12 and 2012-13,
are remitted to the Assessing Officer for fresh consideration in
accordance with law. No Costs.
[T.S.S., J.] [V.B.S., J.]
07.07.2020
Index : Yes/No
Internet : Yes
Speaking/Non-speaking order.
ars/raja
Page 12 of 13 http://www.judis.nic.in

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