Dismissed

Commissioner v. M/S Shriram Chits

Madras HC22 Jan 2021TC/1574/2008

Case brief

AI extract

What is this about?

The tax case appeal filed by the Revenue against the Tribunal order was dismissed as withdrawn due to low tax effect based on CBDT Circular No.17/2019, leaving the substantial question of law open with liberty to restore if limits are exceeded.

What did the court decide?

Tax Case Appeal dismissed as withdrawn; substantial question of law left open; liberty granted to restore on merits if tax limit crossed.

Commissioner Vs M/S Shriram Chits — Income Tax | Madras HC (2021)

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T.C.A.No.1574 of 2008

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATE: 22.01.2021

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CORAM:

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THE HON'BLE MR. JUSTICE M.DURAISWAMY AND

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THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI

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T.C.A.No.1574 of 2008 Commissioner of Income Tax, Chennai. ... Appellant Vs. M/s.Shriram Chits & Investments P. Ltd., 149, Greams Road, Chennai – 6. ... Respondent

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Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, "C" Bench, dated 19.12.2007 in I.TA.No.1088/Mds/2006, Assessment Year 2002-03.

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For Appellant : Mr.J.Narayanasamy, Senior Standing Counsel

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For Respondent : Mr.R.Sivaraman

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T.C.A.No.1574 of 2008

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JUDGMENT

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(Judgment was delivered by M.DURAISWAMY, J.)

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We have heard Mr.J.Narayanasamy, learned Senior Standing

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Counsel for the appellant/Revenue and Mr.R.Sivaraman, learned counsel

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for the respondent/assessee.

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2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 19.12.2007 made in I.TA.No.1088/Mds/2006 on the file of the Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the Tribunal) for the Assessment Year 2002-03.

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3.The appeal was admitted on 06.11.2008 on the following substantial question of law:

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“Whether on the facts and circumstances of the case, the Tribunal was right in holding that the interest paid on debentures should be allowed as a deduction even though the amounts had been utilised for long terms investment in shares for earning dividends which are exempt from tax?”

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T.C.A.No.1574 of 2008

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4.The learned Senior Standing Counsel for the appellant submits

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that the above appeal is not pursued by the Revenue on account of the Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued

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by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been

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increased to Rs.1 crore. It is further submitted that the tax effect in this

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case is less than the threshold limit.

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5.In the light of the said submissions, the above Tax Case Appeal

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is dismissed as withdrawn on account of the Low Tax Effect. The substantial question of law framed is left open. In the event the tax effect in this case is above the threshold limit fixed in the said Circular, liberty is granted to the Revenue to make a mention to this Court to

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restore the appeal to be heard and decided on merits. No costs.

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Index : Yes/No Internet : Yes va

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[M.D., J.] [T.V.T.S., J.] 22.01.2021 (1/2)

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M.DURAISWAMY, J. and

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T.C.A.No.1574 of 2008

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T.V.THAMILSELVI, J.

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The Income Tax Appellate Tribunal, Chennai, “C” Bench

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T.C.A.No.1574 of 2008
(1/2)
22.01.2021

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Commissioner v. M/S Shriram Chits

Case brief

What is this about?

What did the court decide?

Commissioner v. M/S Shriram Chits

Case brief

What is this about?

What did the court decide?

What the court decided

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