In a Tax Case Appeal filed under Section 260A of the Income Tax Act, the Revenue abandoned the appeal due to the Low Tax Effect under Circular No. 17/2019, as the tax impact was below the statutory threshold, resulting in dismissal.
The Tax Case Appeal was dismissed as withdrawn on account of Low Tax Effect.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
DATE: 03.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.1027 of 2014
Commissioner of Income Tax, Chennai.
M/s.Celebrity Fashions Ltd., SDF-IV, 3rd Main Road, MEPZ-SEZ, Tambaram, Chennai – 600 045. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, “D” Bench, dated 30.04.2012 in I.TA.No.1319/Mds/2011, Assessment Year 2007-08.
This Appeal filed against the order of Income Tax Appellate Tribunal Madras “D” Bench, Chennai dated 30/04/2012 passed in I.T.A.No.1319/mds/2011 in Assessment Year 2007-2008, against the Commissioner of Income Tax (Appeals)III No.121, Mahatma Gandhi Road, Nungambakkam, Chennai 600 034, in ITA No.593/09-101A-III dated 28/04/2011 in PAN No.AAACC3696D in Assessment Year 20072008 against the Assistant Commissioner of Income Tax Company Circle-I (3), Chennai 600 034 dated 23/12/2008 in PAN No.AAACC3696D in Assessment Year 2006-2007.
For Appellant : Mr.T.Ravi Kumar, Senior Standing Counsel
For Respondent : Mr.S.Sridhar
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.T.Ravi Kumar, learned Senior Standing Counsel for the appellant/Revenue and Mr.S.Sridhar, 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 30.04.2012 made in I.TA.No.1319/Mds/2011 on the file of the Income Tax Appellate Tribunal, Chennai, “D” Bench (for brevity, the Tribunal) for the Assessment Year 2007-08.
3.The appeal was admitted on 23.12.2014 on the following substantial questions of law:
“1)Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in upholding the order of CIT (A)
who had restricted the disallowance made under Section 14A to 5% of the dividend income earned?
2)Whether the finding of the Tribunal is proper especially when the assessing officer was entitled to disallow under Section 14A even though Rule 8D was procedural in nature?”
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 questions 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.
//True Copy//
Sub Assistant Registrar
va
To
1.The Income Tax Appellate Tribunal,
Chennai, “D” Bench.
2.The Commissioner of Income Tax Appeals-III,
No.121, Mahatma Gandhi Road,
Chennai-600 034.
3.The Assistant Commissioner of Income Tax
Company Circle -I(3),
Chennai 600 034.
+1cc to M/s.T.Ravikumar, Advocate Sr.6015
T.C.A.No.1027 of 2014
vsn II[co]
srg 24/02/2021
3 provisions across 2 enactments
Commissioner of Income Tax, Chennai
M/s.Celebrity Fashions Ltd.
M. Duraiswamy
T. V. Thamilselvi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
