Commissioner Of Income Tax, Chennai v. M/S.sowdambika Finance & Investments Pvt.ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 19.12.2018 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.420 of 2009 Commissioner of Income Tax,Chennai. Appellant Vs.M/s.Sowdambika Finance & Investments Pvt.Ltd.Respondent Tax Case Appeal filed under Section 260-A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras 'C' Bench, Chennai, dated13.05.2008, made in ITA No.2436/Mds/2006 agaisnt the orderof the commisioner of Income Tax (Appeals)V, M.G.Road,Chennai. 34 order dated 20.09.2006 made in ITAA.NO.45/05-06and against the order of the Assistant Commisioner ofIncome Tax,company circle VI(3), Chennai, Order dated10.03.2005 made in PAN/GIR NO.AACCS9335 H/SO-129 for theAssessment Year 2001-2002. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel. For respondent : No appearance J U D G M E N T(Delivered by DR.VINEET KOTHARI,J.) This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed bythe Income Tax Appellate Tribunal, Madras 'C' Bench,Chennai, dated 13.05.2008, in ITA No.2436/Mds/2006, byraising the following substantial questions of law :"(i)Whetheronthefactsandcircumstances of the case, the Tribunal wasright in holding that the expenditure amountingto Rs.37,01,203/- incurred for earning exemptdividend income cannot be disallowed byinvoking retrospective provisions of Section https://hcservices.ecourts.gov.in/hcservices/ 14A ?(ii)Whetheronthefactsandcircumstances of the case, the Tribunal wasright in restricting the disallowance ofexpenditure at the rate of 2% of dividendincome on basis of estimation ? 2. When the matter is taken up for hearing, thelearned Standing Counsel for the Department brought to ournotice the Circular instruction issued by the Central Boardof Direct Taxes vide Circular No.3/2018, dated 11.7.2018,wherein, it is stipulated that appeals shall not befiled/pursued by the Department before the High Court incases where the tax effect does not exceed Rs.50.00 lakhs. 3. In the instant case, the tax effect is said to beless than the monetary limit imposed and, therefore, theappeal filed by the Revenue is dismissed, as not pressed,keeping open the substantial questions of law fordetermination in appropriate cases. No costs. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar dixitToThe Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai. 2. The commisioner of Income Tax (Appeals)V, M.G.Road,Chennai. 34 3. The Assistant Commisioner of Income Tax,company circleVI(3), Chennai +1cc to Mr.T.R.Senthil Kumar , Advocate SR.No. 88714TCA No.420 OF 2009A.SK(19/02/2019)