Commissioner Of Income Tax – Ii v. M/S.inautix Technologies India Pvt. Ltd.,10[Th] Floor, Tidal Park

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 02.03.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.Nos.676 & 677 of 2016 Commissioner of Income Tax – II,No.121, Nungambakkam High Road,Chennai – 600 034.... Appellant in both TCAs Vs. M/s.iNautix Technologies India Pvt. Ltd.,10[th] Floor, Tidal Park,No.4, Canal Bank Road,Taramani, Chennai – 600 113.... Respondent in both TCAs Appeals preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, "D" Bench, dated 19.06.2015 in I.TA.Nos.2277& 2625/Mds/2014 Assessment Year 2008-09. against the order of the Commissioner of Income Tax(A)-II, Chennai-34, dated 19.05.2014 made in ITA.No.1501/13-14,for the Assessment year 2008-09 against the Assessment orderof the Assistant Commissioner of Income Tax, Company Circle-II(3), Chennai-34, made in PAN/GIR No. , dated23.12.2011. For Appellant : Mr.Karthick Ranganathan,(in both TCAs) Senior Standing CounselFor Respondent : Mrs.N.V.Lakshmi (in both TCAs) for Mr.N.V.Balaji COMMON JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthick Ranganathan, learned SeniorStandingCounselfortheappellant/RevenueandMrs.N.V.Lakshmi, learned counsel for the respondent/assessee.https://hcservices.ecourts.gov.in/hcservices/ 2.The appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 19.06.2015 made in I.TA.Nos.2277 &2625/Mds/2014 on the file of the Income Tax AppellateTribunal, Chennai, "D" Bench (for brevity, the Tribunal) forthe Assessment Year 2008-09. 3.The appeals were admitted on 26.09.2016 on thefollowing substantial questions of law:“1)Whether on the facts and circumstancesof the case, the Appellate Tribunal was rightin law in treating 2% of the exempt income asthe expenditure to be disallowed under Section14A of the Income Tax Act for the A.Y. 2008-09which is against the statute? 2)Is not the finding of the AppellateTribunal is bad in law when the statuteprescribes for the disallowance under Section14A is in accordance with Rule 8D of the IncomeTax Rules with effect from Assessment year2008-09 onwards?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenueon account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 crore. It is further submitted that the taxeffect in these cases are less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeals are dismissed as withdrawn on account of the LowTax Effect. The substantial questions of law framed are leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeals to be heard and decided on merits. Nocosts. Sd/- Assistant Registrar(CS VI) //True Copy// va Sub Assistant Registrar To 1.The Registrar, Income Tax Appellate Tribunal, Chennai, "D" Bench. 2.The Commissioner of Income Tax(A)-II, Chennai-34. 3.The Assistant Commissioner of Income Tax, Company Circle II(3), Chennai-34. +1cc to M/s.N.V.Balalji, Advocate, SR No.13788. T.C.A.Nos.676 & 677 of 2016PPA(C)CSR 18.03.2021