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

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Madras HC
2021
Commissioner Vs M/S Shriram ChitsCommissioner v. M/S Shriram Chits

Dismissed

Commissioner v. M/S Shriram Chits

Madras HC22 Jan 2021TC/1575/2008

Case brief

AI extract

What is this about?

Revenue withdrew Income Tax appeal due to low tax effect under CBIC Circular No.17/2019. Appeal dismissed; substantial question left open.

What did the court decide?

Appeal dismissed as withdrawn; substantial question of law left open.

What the court decided

AI extract

A

T.C.A.No.1575 of 2008

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATE: 22.01.2021

CORAM:

THE HON'BLE MR. JUSTICE M.DURAISWAMY AND

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

T.C.A.No.1575 of 2008 Commissioner of Income Tax, Chennai. ... Appellant Vs. M/s.Shriram Chits & Investments P. Ltd., 149, Greams Road, Chennai – 6. ... Respondent

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.1060/Mds/2006, Assessment Year 2002-03.

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

For Respondent : Mr.R.Sivaraman

Page 1/4 https://www.mhc.tn.gov.in/judis/

Parties & counsel

AI extract

appellant
Commissioner of Income Tax, Chennai
respondent
M/s.Shriram Chits & Investments P. Ltd.

Coram

AI extract

M.Duraismwamy

Case details

As recorded by the court registry

Court: Madras HC
Decided on: 22 Jan 2021 · January
Registered: 3 Nov 2008
Case no.: TC/1575/2008

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Cite this judgement

Commissioner v. M/S Shriram Chits, TC/1575/2008 (MAD), decided on 22 January 2021.

The Madras High Court publishes no neutral citation for this judgement — cite it by case number and date of decision.

Bench / Coram

M.Duraismwamy and T.V.Thamilselvi

Parties & counsel

Outcome

Appeal dismissed as withdrawn; substantial question of law left open.

Detailed headnote1 paragraphs

Tax Case Appeal dismissed as withdrawn on account of Low Tax Effect under circular dated 08.08.2019. Substantial question of law framed by the Court is left open. Liberty granted to Revenue to restore appeal if tax effect exceeds threshold.

A compact analysis

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.

T.C.A.No.1575 of 2008

JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.J.Narayanasamy, learned Senior Standing

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

for the respondent/assessee.

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.1060/Mds/2006 on the file of the Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the Tribunal) for the Assessment Year 2002-03.

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

“Whether on the facts and circumstances of the case, the Tribunal was right in treating the payments due from defaulting subscribers as bad debt, when three is no relationship of creditor and debtor between them?”

Page 2/4 https://www.mhc.tn.gov.in/judis/

T.C.A.No.1575 of 2008

4.The learned Senior Standing Counsel for the appellant submits

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

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

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

case is less than the threshold limit.

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

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

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

[M.D., J.] [T.V.T.S., J.] Index : Yes/No 22.01.2021 Internet : Yes (2/2) va

Page 3/4

https://www.mhc.tn.gov.in/judis/

T.C.A.No.1575 of 2008

M.DURAISWAMY, J. and

T.V.THAMILSELVI, J.

va

To
The Income Tax Appellate Tribunal, Chennai, “C” Bench
T.C.A.No.1575 of 2008
(2/2)

22.01.2021

Page 4/4 https://www.mhc.tn.gov.in/judis/

T.V.Thamilselvi

CNR

HCMA010116432008

Topic

Bench

M.duraiswamy T.v.thamilselvi

Disposal

CLOSED

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