Commissioner Of Income Tax, Chennai v. M/S. Bnt Connections Impex Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 02.02.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.144 of 2013 Commissioner of Income Tax,Chennai. ... Appellant/Appellantvs. M/s. BNT Connections Impex Ltd.,No.41, KKR Avenue, Moolakadai,Perambur, Chennai. - 600 011. ... Respondent/Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, “C” Bench, dated 17.09.2012 inITA.No.1287/Mds/2012 for the Assessment Year 2008-09 preferredagainst the order of the Commissioner of Income Tax (A) III,Chennai 34 dated 12.03.2012 made in ITA.No. 701/2010-11/A-IIIfiled against the Assessment under of the AssistantCommissioner of Income Tax Company Circle – I (2), Chennai 34dated 28/12/2010 for the Assessment Year 2008-2009. For Appellant : Mr.T. Ravikumar Standing Counsel For Respondent : Mr. R. Sivaraman JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) We have heard Mr.T. Ravikumar, learned StandingCounsel for the appellant/Revenue and Mr. R.Sivaraman forthe respondent/Assessee. 2. The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainsttheorderdated17.09.2012madeinITA.No.1287/Mds/2012 on the file of the Income Tax AppellateTribunal, Chennai, “C” Bench (for brevity, the Tribunal) forthe Assessment Year 2008-09. 3.The appeal was admitted on 11.01.2016 on the followingsubstantial question of law:“ Whether, on the facts and circumstanceshttps://hcservices.ecourts.gov.in/hcservices/of the case, the Appellate Tribunal was right in holding that diversion of borrowed fundsfor investment in its subsidiary would not leadto disallowance of interest under section 36(1)(iii)?" 4.The learned Standing Counsel appearing for theappellant submits that the above appeal is not pursued by theRevenue on account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 crore. It is further submitted that the taxeffect in this case is less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial question of law framed is leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty is grantedto the Revenue to make a mention to this Court to restore theappeal to be heard and decided on merits. No costs. Sd/-Assistant Registrar//True Copy// Sub Assistant Registrar RjTo 1.The Assistant Registrar, The Income Tax Appellate Tribunal, Chennai, “C” Bench. 2.The Commissioner of Income Tax (A), 121, Mahatma Gandhi Road, Chennai 34. 3.The Assistant Commissioner of Income Tax, Company Circle – I (2), Chennai 34. +1cc to Mr.T.Ravikumar, Advocate, S.R.No. 5428 T.C.A.No.144 of 2013 RSI(CO)GN(22/02/2021) https://hcservices.ecourts.gov.in/hcservices/