Commissioner Of Income Tax-4 v. M/S.mustang Trading And Investments Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 13.07.2021 CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R. HEMALATHA T.C.A.No.25 of 2017 Commissioner of Income Tax-4,No.121, Mahatma Gandhi Road,Chennai – 600 034. ...AppellantVs. M/s.Mustang Trading and Investments Pvt. Ltd.,112, 5[th] Floor, Eldarado,Nungambakkam High Road,Chennai – 600 034. ...Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “A” Bench, dated 29.07.2016 in I.TA.No.129/Mds/2016,Assessment Year 2007-08 against the order of the Commissioner ofIncome Tax (Appeals)-8, Chennai dated 26.10.2015 inI.TA.No.31/2012-2013, G.I. No./P.A. No. AAACM4620P for theAssessment year 2007-2008 against the order of the AssistantCommissioner of Income Tax, Company Circle IV(3) Chennai dated06.02.2013 in P.A. No. AAACM4620P for the Assessment year 2007-2008. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel and Mr.S.Rajesh, Standing Counsel For Respondent : Notice served JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel and Mr.S.Rajesh, learned Standing Counsel forthe appellant/Revenue. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 29.07.2016 made in I.TA.No.129/Mds/2016 on the https://hcservices.ecourts.gov.in/hcservices/ file of the Income Tax Appellate Tribunal, Chennai, “A” Bench(for brevity, the Tribunal) for the Assessment Year 2007-08. 3.The appellant/Revenue has raised the following substantialquestions of law in the above appeal :“1.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatRule 8D is not applicable for the pendingproceedings relating to Assessment year 2007-08,when Income Tax Rules are held to be proceduralin nature and applicable for all pendingproceedings by the Apex Court in CWT-Vs-SharvanKumar Swarup & Sons reported in 210 ITR 886? 2.Whether, in the facts and circumstances ofthe case and in law, the Appellate Tribunal iscorrect in deleting the addition made to bookprofits computed u/s.115JB being expenditureincurred to earn exempt income even though clause(f) of explanation 1 to Section 115JBspecifically provides for it under Income TaxAct, 1961?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the Low Tax Effect in terms of Circular No.17/2019dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. s/d- Assistant Registrar(CS-III) True Copy Sub-Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Chennai, “A” Bench 2.The Commissioner of Income Tax-4No.121, Mahatma Gandhi Road,Chennai 34.No.121, Mahatma Gandhi Road,Chennai 34. 3.The Commissioner of Income Tax (Appeals)-8 No.121, Mahatma Gandhi Road, Chennai 34. No.121, Mahatma Gandhi Road, Chennai 34. 4.The Assistant Commissioner of Income TaxCompany Circle (IV)(3) ChennaiCompany Circle (IV)(3) Chennai T.C.A.No.25 of 2017 SMI(CO)SP(09/08/2021)