2024 (12) TMI 1542 - HC - Income Tax

Tax Appeals Dismissed as Prior Order Resolved Issues Against Assessee; Sections 35E, 37, 80IA Involved

MADRAS CEMENTS LTD., Versus THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1, VIRUDHUNAGAR I

The Madras HC dismissed both tax case appeals without costs. The court observed that similar issues had been resolved against the assessee in a prior ... Allowance of only 1/10th u/s 35E as against the claim u/s 37 -entitlement to deduction of expenses claimed wrongly described as 'Prospecting Expenses' - whether Tribunal is right in holding that the appellant is entitled to get relief only under Section 35E of the Act in respect of expenditure in question - Appellant entitlement to relief u/s 80IA in respect of 650 TPD Kiln? - Tribunal held that the appellant is not entitled to get relief u/s 80IA even though the new kiln is independent and a viable unit HELD THAT:- The aforesaid questions would have to be answered against the assessee as the same issues had arisen from the order of the Tribunal for AY.1996-97 and the assessee/appellant has accepted the order of the Income Tax Appellate Tribunal. In view of the aforesaid position, the assessee does not seriously pursue these appeals. It was noted that 'order dated 24.10.2024 is recalled' because the tax impact exceeded the threshold under Circular No.9 of 2024 (17.09.2024). The Court framed six questions of law, including whether the Tribunal was justified in allowing only '1/10th under Section 35E as against the claim under Section 37', the characterisation of Rs.23,03,670 as 'Prospecting Expenses', applicability of Section 35E(5), and entitlement to relief under Section 80IA in respect of a 650 TPD kiln/new independent unit. The issues were answered against the assessee: identical questions had arisen in the Tribunal's order dated 26.12.2002 for AY 1996-97 and the assessee had accepted that earlier ITAT order; consequently the assessee did not seriously pursue the appeals. Both tax case appeals were dismissed. No costs.