Commissioner Of Income Tax - I, Chennai v. M/S. Dsm Soft Pvt. Ltd1, 15[Th] Cross Streetshastri Nagarchennai – 600 020

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR. JUSTICE R. MAHADEVANAND THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD T.C.A.Nos.1266 to 1268 of 2010 Commissioner of Income Tax - I, Chennai. ..Appellant in all TCAs Versus M/s. DSM Soft Pvt. Ltd1, 15[th] Cross StreetShastri NagarChennai – 600 020 ..Respondent in all TCAs Tax Case Appeals filed under Section 260A of the Income TaxAct, 1961, against the common order of the Income Tax AppellateTribunal, Chennai, “A” Bench, dated 11.06.2010 in I.TA.Nos. 12,366 & 367/Mds/2010 against the order of the Commissioner ofIncome Tax Appeals III Chennai – 600 034 dated 08.12.2009 inITA.No.416/07-08 & 417/-7-08 for the assessment year 2005-06 &2004-2005 against the order of the Income Tax Officer (OSD)company Circle I (4), Chennai dated 27.12.2007 & 24.12.2007GI.No/PAN No. for the Assessment year 2005-2006 &2004-2005. COMMON JUDGMENT These tax case appeals have been filed by the appellant /Revenue, challenging the order dated 11.06.2010 passed by theIncome Tax Appellate Tribunal, Bench 'A', Chennai, inI.TA.Nos.12, 366 and 367/Mds/2010, relating to the assessmentyears 2004-2005 and 2005-2006. https://hcservices.ecourts.gov.in/hcservices/ aforesaid tax case appeals on the following substantial questionof law: “Whether on the facts and in the circumstances ofthe case, the Income-tax Appellate Tribunal was rightin deleting the disallowance of interest on borrowedcapital diverted for giving interest free loans to thegroup concerns of the assessee, viz. M/s.MargonIndustries Ltd. and M/s.DSM Infosystems P. Ltd. andfor investment in the equity shares or the assessee'ssubsidiary company M/s.DSM Deodata Ltd. applying thedecision of the Supreme Court in 288 ITR 1 withoutconsidering the difference in the facts involved inthe assessee's case?" 3.When the matters were taken up for consideration, thelearned counsel for the appellant / Revenue brought to the noticeof this court the Circular No.17/2019 dated 08.08.2019 issued bythe Central Board Direct Taxes, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). It is also submitted thatthe tax effect in these appeals is less than the threshold limitand there is no audit objection involved. The learned counselalso filed a memo to that effect. 4.In the light of the aforesaid submissions made by thelearned counsel for the appellant / Revenue, the present appeals,wherein, the tax effect is said to be less than the monetarylimit imposed, are dismissed as withdrawn, keeping open thesubstantial question of law for determination in appropriatecases. No costs. Sd/- Assistant Registrar(CS-VI) //True Copy// dhk/av Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal, Bench 'A', Chennai Bench 'A', Chennai 2. The Commissioner of Income Tax - I, Chennai. Chennai. 3. The Assistant Commissioner of Income Tax, Company Circle I(4), Chennai.4. The Commissioner of Income Tax (Appeals) - III Chennai5. The Income Tax Officer (OSD) Company Circle I (4), Chennai. +1cc to Mr.Ravikumar, Advocate, S.R.No.20923 MG(CO)RGA(21/04/2022) T.C.A.Nos.1266 to 1268 of 2010