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TMI Blog2021 (4) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... - MADRAS HIGH COURT ] - Thus the questions of law are decided against the Revenue. - Tax Case Appeal No.1023 of 2014 - - - Dated:- 15-4-2021 - Hon'ble Mr.Justice M. Duraiswamy And Hon'ble Mrs.Justice R.Hemalatha For the Appellant : Mr.M.Swaminathan, Senior Standing Counsel assisted by Ms.V.Pushpa, Standing Counsel For the Respondents : Mr.Vikram Vijayaraghavan JUDGMENT M.DURAISWAMY, J. Challenging the order passed in I.T.A.No.607/Mds/2012 in respect of the assessment year 2002-03 on the file of the Income Tax Appellate Tribunal, Madras A Bench, Chennai, the Revenue has filed the above appeal. 2.It is the case of the appellant Revenue that the assessee Company filed its return of income on 31.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Entry tax is payable under Section 4B(1) on purchase value of motor vehicles at the time of entry of such vehicles in the local area for use or sale which is liable for registration. After considering the explanation of the assessee, the Assessing Officer held that the assessee's claim of entry tax in the Profit and Loss account is to be disallowed and added back to the total income. Aggrieved over the order passed by the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) and the Appellate Authority allowed the appeal following the decision rendered in the case of TVS motors Limited for the assessment year 2003-04. Aggrieved over the same, the Revenue filed an appeal before the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ... 33. On the question of deduction under Entry Tax, the Tribunal rightly considered the claim of the assessee for deduction of entry tax payment made by the assessee. The Assessing Officer admitted that the deduction on account of Entry Tax is allowable if the payment is actually made and admittedly, payment of entry tax has been made by the assessee; the entry tax paid would get the adjustment as against the Sales Tax liability, consequently, any deduction would amount to total deduction. 34. We do not agree with the said line of reasoning. The payment made on the entry tax demand and its adjustment against the Sales Tax assessment has nothing to do with deduction provision under the Income Tax Act on the entry tax paid. Conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Entry Tax under Section 43B of the Act, the question is answered against the Revenue. Consequently, the Tax Case (Appeal) No. 174 of 2009 stands dismissed. No costs. 6.Mr.Vikram Vijayaraghavan, the learned counsel appearing for the respondent assessee submitted that in view of the ratio laid down by the Hon'ble Division Bench of this Court reported in [2014] 364 ITR 1 (Madras) , cited supra, the questions of law may be decided against the Revenue and the appeal may be dismissed. 7.In view of the submissions made by the learned counsel on either side, following the ratio laid down by the Hon'ble Division Bench of this Court in the judgment in Commissioner of Income Tax, Chennai Vs. TVS Motors Ltd., reported in [2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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