Commissioner Of Income Tax Chennai v. M/S.lucas Tvs Ltd.,M.t.h.road, Padi, Chennai 600 050

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 6.9.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Nos.1459 & 1460 of 2008 Commissioner of Income Tax Chennai. ...Appellant in both cases Vs. M/s.Lucas TVS Ltd.,M.T.H.Road, Padi, Chennai 600 050. ...Respondent in both cases Tax Cases filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal, 'B'Bench, Chennai, dated 15.2.2008 made in ITA Nos.30/Mds/2007 and119/Mds/2007 for the Assessment Year 2003-2004 in ITANos.30/mds/2007 and 119/mds/2007 against the Commissioner ofIncome Tax (Appeals)-III,Chennai in ITA No.69/2006-07/A.III,date of Order 01.12.2006 in PAN-AAA Claimant 3/63E for theAssessment Year 2003-2004 against the Income Tax Officer,Company Ward II,(1), Chennai in G.I./P.A.No.AAACL 3763 E for theAssessment Year 2003-2004, dated 10.03.2006. For Appellant : Mr.Karthik Ranganathan, Senior Standing Counsel For Respondent : No appearance. These Tax Cases have been filed by the Revenue, calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'B' Bench, Chennai, dated 15.2.2008 made inITA Nos.30/Mds/2007 and 119/Mds/2007, for the Assessment Year2003-2004, by raising the following substantial questions of law: i) Whether, on the facts and in the circumstances ofthe case, the Tribunal was right in holding thatinterest under Section 234D of the Income Tax Act https://hcservices.ecourts.gov.in/hcservices/ cannot be charged in respect of refund granted priorto the insertion of section 234D, when the regularassessment was completed only subsequent to theinsertion of section 234D of the Act? ii) Whether, on the facts and in the circumstancesof the case, no interest can be charged even for theperiod subsequent to the introduction of section234D of the Act merely on the ground that the refundwas granted prior to its introduction? TCA 1460/2008Whether, on the facts and in the circumstances ofthe case, the Tribunal was right in disallowing the5% allocation of expenses attributable to theearning of the dividend income, when the same wasjustified in view of the proviso to section 14A ofthe Act?" 2. When the matters are taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant cases, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appeals filedby the Revenue are dismissed, as withdrawn, keeping open thesubstantial questions of law for determination in appropriatecases. No costs. ssk Sd/- Assistant Registrar //True Copy// To 1. The Commissioner of Income Tax Chennai. Chennai. 2. The Income Tax Appellate Tribunal, 'B' Bench, Chennai. 'B' Bench, Chennai. 3. The Commissioner of Income Tax, (Appeals-III), Chennai -34. (Appeals-III), Chennai -34. 4. The Income Tax Officer Company Ward-II(1),Chennai. Company Ward-II(1),Chennai. 5. The Income Tax Officer (OSD) Company Circle-II(4), Chennai 600 034. Company Circle-II(4), Chennai 600 034. +1cc to Mr.Subbaraya Aiyar Padmanabhan, Advocate, SR.No.77651/19 Tax Case Nos.1459 & 1460 of 2008 Kak(24/10/2019)Kak(11/11/2019)