Commissioner Of Income Tax Iv v. M/S.murugappa Management Services Ltd.,Dare House, Extension

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 24.03.2021 CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.Nos.965 and 701 of 2015 Commissioner of Income Tax IV,121, M.G. Road,Chennai 600 034.... Appellantin all appeals Vs. M/s.Murugappa Management Services Ltd.,Dare House, Extension,234, NSC Bose Road,Chennai – 600 001.... Respondentin all appeals Tax Case Appeals in T.C.A.Nos.965 and 701 of 2015 preferredunder Section 260A of the Income Tax Act, 1961, against theorder of the Income Tax Appellate Tribunal, Madras, “C” Bench,dated15.10.2013and25.04.2014respectivelyinI.T.A.Nos.304/Mds/2013 and 2312/Mds/2013, respectively for theAssessment Years 2009-10 and 2010-11 respectively. TCA No.965 of 2015: Appeal against the Order of the Commissioner of Income Tax(Appeals)-V, 121, M.G.Road, Chennai-34 made in CIT (A) V/ITANo.357/2011-12 order dated 30.11.2012 Assessment Year 2009-10. Appeal against the order of the Assistant Commissioner ofIncome Tax Company Circle-IV (3), Chennai dated 28/12/2011 madein PAN NO. , Assessment Year 2009-10. TCA No.701 of 2015: Appeal against the order of the Commissioner of Income Tax(Appeals)-IV, 121, M.G.Road, Chennai-34 made in ITA No.430/13-14order dated 30/08/2013, Assessment Year 2010-11. Appeal against the order of the Assistant Commissioner ofIncome Tax, Company Circle IV (3), Chennai dated 28/01/2013 madein PAN NO. , Assessment Year 2010-11. https://hcservices.ecourts.gov.in/hcservices/ For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel in all appealsFor Respondent : Mr.R.Venkata Narayanan in all appealsC O M M O N J U D G M E N T (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Mr.R.VenkataNarayanan, learned counsel for the respondent/assessee. 2.The above appeals, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 (for short, the Act), are directedagainst the orders dated 15.10.2013 and 25.04.2014 made inI.T.A.Nos.304/Mds/2013 and 2312/Mds/2013 respectively on thefile of the Income Tax Appellate Tribunal, Madras, “C” Bench(for brevity, the Tribunal) for the Assessment Years 2009-10 and2010-11 respectively. 3.The above appeals were admitted on 29.10.2015 on thefollowing substantial questions of law:“1.Whether on the facts and in the circumstancesof the case, the assessee is eligible for deduction ofinterest u/s.37(1) of the Income Tax Act, when theloan borrowed was not for the purpose of its businessactivity? 2.Whether on the facts and in the circumstances ofthe case, the Tribunal was right in allowing interestexpenditure without taking cognizance of the fact thatthe assessee diverted interest bearing loan from HDFCBank to a non-commercial and non-business purpose toits Employee's Trust that too without charging anyinterest?” 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 08.08.2019 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 these cases isless than the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeals are dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in these cases is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the above appeals to be heard and decided on merits. Nocosts. 5.In the light of the said submissions, the above Tax CaseAppeals are dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in these cases is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the above appeals to be heard and decided on merits. Nocosts. Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant RegistrarTo1.The Income Tax Appellate Tribunal, Madras, “C” Bench.2.The Commissioner of Income Tax IV, 121, M.G. Road, Chennai 600 034.3.The Commissioner of Income Tax (Appeals)-V, 121, M.G.Road, Chennai-34.4.The Commissioner of Income Tax (Appeals)-IV, 121, M.G.Road, Chennai-34 5.The Assistant Commissioner of Income Tax, Company Circle-IV (3), Chennai.+1cc to M/s.Subbaraya Aiyar, Advocate Sr.19323T.C.A.Nos.965 and 701 of 2015 sr-II[co]srg 03/05/2021