Dismissed

Commissioner of Income Tax v. M/S Laxmi Jewellery

Madras HC29 Sept 2021TCA/300/2013

Case brief

AI extract

What is this about?

The High Court of Judicature at Madras dismissed a Tax Case Appeal filed under Section 260A of the Income Tax Act by the Revenue against the ITAT order. The court held that the appeal was not pursued due to a Low Tax Effect based on Central Board of Direct Taxes Circular No. 17/2019.

What did the court decide?

The Tax Case Appeal was dismissed on account of Low Tax Effect. Liberty granted to Revenue to restore the appeal if tax effect exceeds threshold.

Commissioner of Income Tax Vs M/S Laxmi Jewellery — Income Tax | Madras HC (2021)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 29.09.2021

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CORAM :

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THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM

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AND

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THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP

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T.C.A.No.300 of 2013

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Commissioner of Income Tax,
Chennai.

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...Appellant / Respondent

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Vs.

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M/s.Laxmi Jewellery,
65, NSC Bose Road,
Sowcarpet,
Chennai 600 079....Respondent / Appellant

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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,“B”Bench,dated13.09.2012in
I.TA.No.316/Mds/2012, Assessment Year 2008-09.

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Against the order passed by the Commissioner of Income
Tax (Appeals)-IV, 121, Mahatma Gandhi Road, Chennai-600 034 made
in ITA No.167/2010-11/A-IV dated 15.12.2011 for the assessment
year 2008-09.

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Against the order passed by the Assistant Commissioner of
Income Tax, Business Circle XI, II Floor, Kannammai Building,
611, Anna Salai, Chennai-6 made in PAN/G.I.R. No.AAAFL0161F
dated 22.12.2010 for the assessment year 2008-09.

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For Appellant :Mr.T.Ravi Kumar,
Senior Standing Counsel

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For Respondent : Mr.Prithvi Chopda

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https://hcservices.ecourts.gov.in/hcservices/

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J U D G M E N T

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(Judgment was delivered by T.S. SIVAGNANAM, J.)

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We have heard Mr.T.Ravi Kumar, learned Senior Standing
Counsel for the appellant/Revenue and Mr.Prithvi Chopda ,
learned counsel for the respondent/assessee.

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2.The appeal, filed by the Revenue under Section 260A of
the Income Tax Act, 1961 (“the Act” for brevity) is directed
against the order dated 13.09.2012 made in I.T.A.No.316/Mds/2012
on the file of the Income Tax Appellate Tribunal, Madras, “B”
Bench (“the Tribunal” for brevity) for the Assessment Year 2008-
09.

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3.The appeal was admitted on 23.07.2013 on the following
substantial question of law:

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“Whether on the facts and in the

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circumstances of the case, the Tribunal was right in
holding that the assessee firm is not a registered
and beneficial shareholder in the group company and
cannot be assessed to be deemed dividend under
Section 2(22)(e) of the Income Tax Act?"

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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.

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

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Sd/-

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Assistant Registrar (CS-III)

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// True Copy //

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Sub Assistant Registrar

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jeni/mkn

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https://hcservices.ecourts.gov.in/hcservices/

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`To`
`1.The Income Tax Appellate Tribunal,` `Madras, “B” Bench`
`2.The Commissioner of Income Tax,` `Chennai.`
`3.The Commissioner of Income Tax (Appeal)-IV,` `121, Mahatma Gandhi Road,` `Chennai – 600 034.`
`4.The Assistant Commissioner of Income Tax,` `Bussiness Circle XI, II Floor,` `Kannammai Building,` `611, Anna Salai, Chennai – 6.`
`5.The Section Officer,` `V.R.Section,` `High Court, Madras.`
`+1cc to Mr.T.Paramod Kumar Chopda, Advocate SR.No.50734`
`+1cc to Mr.T.Ravi Kumar, Advocate SR.No.50302`
`T.C.A.No.300 of 2013`
`AK(CO)`
`RVM(22/10/2021)`

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https://hcservices.ecourts.gov.in/hcservices/

Commissioner of Income Tax v. M/S Laxmi Jewellery

Case brief

What is this about?

What did the court decide?

Commissioner of Income Tax v. M/S Laxmi Jewellery

Case brief

What is this about?

What did the court decide?

What the court decided

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