The High Court dismissed the Revenue's tax case appeal under Section 260A of the Income Tax Act because the tax effect was below the threshold limit specified in CBDT Circular No. 17/2019.
Tax case appeal dismissed on account of low tax effect.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
In the High Court of Judicature at Madras
Dated : 08.7.2020
Coram :
The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN
Tax Case Appeal No.236 of 2018
Principal Commissioner of Income
M/s.Neovia Logistics Services India Pvt. Ltd., Chennai-113. ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 28.10.2016 made in ITA.No.77/Mds/2016 on the file of the Income Tax Appellate Tribunal, Madras 'D' Bench for the assessment year 2009-10.
Against the order dt.11.9.15 made in ITA.No.502/13-14/1, New No.ITA 106/CIT(A)-1/2013-14 on the file of the Commissioner of Income Tax (Appeals)-1, Chennai, for the Assessment Year 2009-10.
Against the order dt.13.5.2013 made in PAN/GIR No.AACCC3949F on the file of the Assistant Commissioner of Income Tax, Company Circle 1(3) Chennai for the Assessment Year 2009-10.
For Appellant :Mr.Karthik Ranganathan For Respondent :M/s.King & Patridge
Judgment was delivered by T.S.Sivagnanam,J
We have heard Mr.Karthik Ranganathan, learned Senior Standing Counsel appearing for the appellant – Revenue and the learned counsel for the respondent.
“i. Whether, on the facts and circumstances of the case and in law, the Tribunal was correct and justified in granting deduction under Section 10A when there is clear violation of Section 10A(2) (ii) of the Income Tax Act ?
ii. Whether, on the facts and circumstances of the case and in law, the Tribunal was right and justified in holding that the assessee is entitled to deduction under Section 10A to the Logistics Division formed by splitting up or reconstruction of an already existing business ? And
iii. Whether, on the facts and circumstances of the case and in law, the Tribunal erred in disregarding the fact that the ultimate ownership of Logistics Division vests with M/s.Caterpillar Inc., USA only which reconstructed its business by transferring this Division from CCPL to the assessee and thus, the impugned order of the Tribunal is perverse on facts and in law ?”
Sd/Assistant Registrar(CS ) //True Copy//
Sub Assistant Registrar
To
1.The Income Tax Appellate Tribunal, Madras 'D' Bench.
2.The Commissioner of Income Tax (Appeals)-1, Chennai.
3.The Assistant Commissioner of Income Tax, Company Circle 1(3), Chennai.
Rsv(co) krd 3/9
TCA.No.236 of 2018
1 issue framed by the court
Whether the Substantial Questions of Law can be pursued by the Revenue on account of low tax effect as per the CBDT Circular
2 provisions across 1 enactments
Principal Commissioner of Income Tax
M/s. Neovia Logistics Services India Pvt. Ltd.
T.S. SIVAGNANAM
V. BHAVANI SUBBAROYAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
