Commissioner Of Income Tax I,Chennai v. Klk Electricals Ltd.,New

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 26.09.2019 CORAM : THE HON'BLE DR.VINEET KOTHARI, ACTING CHIEF JUSTICEANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case (Appeal) No.250 of 2009 Commissioner of Income Tax I,Chennai... Appellant -vs- KLK Electricals Ltd.,New No.64, GF 8[th] Cross Street,Chennai-30PAN AAACK2418F.. Respondent Tax Case Appeals filed under Section 260A of the Income TaxAct, 1961, against the order of the Income tax AppellateTribunal, 'B' Bench, Chennai, dated 26.09.2008 made inITA.No.2227/Mds/06 against the Order of the Commissioner ofIncome Tax (Appeals)-III, Chennai -34, dated 08.08.06, made inITA No.314/2005-06 against the assessment order of the Asst.Commissioner of Income Tax Company Circle-11 (3), Chennai for GINo./PA.No.5010-K/AAACK 2418F for the Assessment Year 2003-04. For Respondent: Mr.G.Surya Narayanan JUDGMENT (Delivered by The Hon'ble Acting Chief Justice) This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'B' Bench, Chennai, dated26.09.2008, for the Assessment Year 2003-04, by raising thefollowing substantial question of law: “Whether on the facts and circumstances of thecase, the Tribunal was right in holding that theprincipal amount of loans waived by banks and othercreditors cannot be treated as income of theassessee?” 2. When the matter is taken up for hearing, the learnedJunior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8[th] 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 case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed, as withdrawn, keeping open thesubstantial question of law for determination in appropriatecases. No costs. bbr Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant RegistrarTo 1. The Registrar, Income Tax Appellate Tribunal, Madras "B" Bench, Chennai.2. The Commissioner of Income Tax (Appeals)-III 121, Mahatma Gandhi Road, Chennai-34.3. The Assistant Commissioner of Income Tax, Company Circle II(3), Chennai-34. 4. The Commissioner of Income Tax,I, Chennai. T.C.(A) No.250 of 2009 Kak(08/11/2019)