Dismissed¶3

Commissioner of Income Tax v. a.M.Kanniappa Mudaliar

Madras HC4 Mar 2026TCA/351/2013

Case brief

AI extract

What is this about?

Withdrawal of departmental tax appeal; Circular No. 9 of 2024 dated 15.03.2024; monetary limit Rs.2 crores / tax effect; Section 260-A Income Tax Act 1961; ITA No.306/Mds/2012; Income Tax Appellate Tribunal 'A' Bench Chennai order dated 12.12.2012; assessment year 2008-2009; disputed tax Rs.1,92,81,521; Commissioner of Income Tax Central-I v. A.M.Kanniappa Mudaliar and AMK Jambulinga Mudaliar Education Trust; substantial questions of law left open; dismissed as withdrawn; no costs; T.C.A.; Madras High Court.

What did the court decide?

Leave to withdraw the appeal effectively granted: the Tax Case Appeal was dismissed as withdrawn with no costs; substantial questions of law left open without prejudice to the Department's rights in another appropriate case. ¶3

Commissioner of Income Tax Vs a.M.Kanniappa Mudaliar — Income Tax | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the pending Tax Case Appeal falls within the monetary limit fixed by Circular No. 9 of 2024 (withdrawal where tax effect is below Rs.2 crores), warranting leave to withdraw. +1 more

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Court's answer

Recording the Standing Counsel's submissions, the Tax Case Appeal is dismissed as withdrawn, the disputed tax having been stated to fall within the monetary limit prescribed by Circular No. 9 of 2024.

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Key takeaways

The substantial questions of law raised in the appeal are left open to be decided in an appropriate case, and the withdrawal shall not prejudice the Department's right to raise such question of law in any other appropriate case.obiter¶3

Detailed headnote1 paragraphs

Madras High Court (T.C.A.No.351 of 2013, decided 04-03-2026; coram Dr. G. Jayachandran and Shamim Ahmed, JJ.). The Commissioner of Income Tax Central-I filed this Tax Case Appeal under Section 260-A of the Income Tax Act, 1961 against the order dated 12.12.2012 of the Income Tax Appellate Tribunal, "A" Bench, Chennai, in ITA No.306/Mds/2012, concerning the respondent trust (A.M.Kanniappa Mudaliar and AMK Jambulinga Mudaliar Education Trust), the disputed tax for assessment year(s) 2008-2009 being stated at Rs.1,92,81,521/-. The Learned Standing Counsel submitted that under Circular No. 9 of 2024 dated 15.03.2024, appeals where the tax effect is below Rs.2 crores must be withdrawn, and that this appeal fell within that prescribed monetary limit; he accordingly sought leave to withdraw. Recording the submissions, the Court dismissed the appeal as withdrawn, expressly left the substantial questions of law open to be decided in an appropriate case, and held that the withdrawal shall not prejudice the Department's right to raise such question of law in any other appropriate case. No costs.

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T.C.A.No.351 of 2013

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 04-03-2026

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CORAM

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THE HONOURABLE DR. JUSTICE G. JAYACHANDRAN AND THE HONOURABLE MR.JUSTICE SHAMIM AHMED

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T.C.A.No.351 of 2013

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The Commissioner of Income Tax Central-I, 108, Nungambakkam High Road, Chennai 600 034.

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… Appellant/Appellant

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Vs.

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A.M.Kanniappa Mudaliar and AMK Jambulinga Mudaliar Education Trust, 122, Gengu Reddy Road, Egmore, Chennai 600 008, PAN:AAA TA 0805 B

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… Respondent/Respondent

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Prayer:

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Tax Case Appeal is filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal, “A” Bench, Chennai, dated 12.12.2012 in ITA No.306/Mds/2012.

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For Appellant: Mr.J.Narayanasamy Standing Counsel

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JUDGMENT

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This Tax case appeal has been filed by the Department challenging the

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order passed by the Income Appellate Tribunal dated 12.12.2012.

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Page Nos.1/3

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

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T.C.A.No.351 of 2013

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The Learned Standing Counsel appearing for the Appellant/Department would submit that the disputed tax amount for the assessment years 2008-2009

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is Rs.1,92,81,521/-. Thereafter, he would further submit that the Government has issued a new Circular No. 9 of 2024 dated 15.03.2024 in which if the tax

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effect is less than Rs.2 crores, the appeal has to be withdrawn; pursuant to the same, the present appeal pending before this Court comes under the prescribed monetary limit of the circular mentioned supra, hence, he seeks leave of this Court to withdraw this Appeal.

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Recording the above said submissions, this Tax Case Appeal is dismissed as withdrawn. The substantial questions of law raised in this appeal is left open to be decided in an appropriate case and the withdrawal of this appeal shall not prejudice the rights of the Department to raise such Question of Law in any other appropriate case. No costs.

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(G.JAYACHANDRAN, J.) (SHAMIM AHMED, J.) 04.03.2026

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Neutral Citation:Yes/No ari

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Page Nos.2/3

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

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T.C.A.No.351 of 2013

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Dr.G.JAYACHANDRAN, J. AND SHAMIM AHMED, J. ari