Commissioner Of Income Tax, Corporate Ward-3, Chennai v. Tamil Nadu Sugar Corporation Limited, 690, Evr Building, Anna Salai, Chennai - 600 035

In the High Court of Judicature at Madras Dated : 28.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.665 to 668 of 2018 Commissioner of Income Tax,Corporate Ward-3, Chennai....AppellantVs Tamil Nadu Sugar Corporation Limited,690, EVR Building, Anna Salai, Chennai - 600 035.PAN: ...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 05.01.2018 made in ITA.Nos.1827,1828, 2054 and 2055/Mds/2017 on the file of the Income TaxAppellate Tribunal, Chennai 'C' Bench for the assessment years2012-13 and 2013-14. against the order of the Commissioner of Income Tax (Appeals)– 11, Chennai made in ITA.Nos.100/2015-16/CIT(A)-11 and 36/2016-17/CIT(A)-11, dated 19.05.2017 and 23.05.2017 respectively andagainst the order of the Assistant Commissioner of Income TaxCorporate Circle – 3 (1), Chennai-600 034 and Income Tax OfficerCorporate Ward -3 (1), Chennai-34 order dated 23.03.2015 and23.03.2016 made in GIR.No. AACTI 1308B respectively. For Appellant : Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SSC We have heard Mr.M.Swaminathan, learned Senior StandingCounsel assisted by Ms.V.Pushpa, learned Senior Standing Counselappearing for the appellant – Revenue and Mr.V.S.Jayakumar,learned counsel appearing for the respondent - Assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 05.01.2018 made in ITA.Nos.1827, 1828, 2054 and2055/Mds/2017 on the file of the Income Tax Appellate Tribunal,Chennai 'C' Bench for the assessment years 2012-13 and 2013-14. 3.The appeals were admitted on 16.11.2018 on the followingsubstantial questions of law : “i.Whether the Tribunal was correct andjustified in restricting the disallowance made underSection 14A to the extent of exempt income? ii.Whether the Tribunal was justified that theinvestment in shares in sister concerns also yieldeddividend income, which is exempt from income tax andhence, provisions of Section 14A are applicable? and iii.Whether the Tribunal was justified inholding that loans were given out of mixed bag fundsand hence, interest on loan given to sister concernis not an allowable business expenditure underSection 36(1)(iii)?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. cse https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. Chennai 'C' Bench. 2.The Commissioner of Income Tax, Corporate Ward -3, Chennai. Corporate Ward -3, Chennai. 3.The Commissioner of Income Tax (Appeals) – 11, Chennai – 34. Chennai – 34. 4.The Income Tax Officer, Corporate Ward -3 (1), Chennai -34. Corporate Ward -3 (1), Chennai -34. 5.The Assistant Commissioner of Income Tax, Corporate Circle – 3 (1), Chennai – 34. Corporate Circle – 3 (1), Chennai – 34. +1cc to Mr.V.S.Jayakumar, Advocate, S.R.No. 74232+1cc to Mr.M.Swaminathan, Advocate, S.R.No. 74844 TCA.Nos.665 to 668 of 2018 CP(CO)GN(06/11/2019)