Commissioner Of Income Tax v. M/S.four M Maritime P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R. HEMALATHA Commissioner of Income Tax,No.121, Nungambakkam High Road,Chennai – 600 034.... Appellant/AppellantVs. M/s.Four M Maritime P Ltd.,No.4, Buhari Towers,Moores Road, Chennai – 600 006.... Respondent/Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 24.10.2014 in I.TA.No.1971/Mds/2014,Assessment Year 2010-11. Against the order of the Commissioner of Income-Tax(Appeals)III, Chennai in ITA.160/2011-12/A-111 dated 22/01/2013against the order of the income Tax officer, company ward-11(1)Chennai in GIR.No./PAN dated 15/02/2013 assessmentyear 2010-2011. For Respondent : Ms.Sri Niranjani Srinivasan for M/s.G.Baskar JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Ms.Sri NiranjaniSrinivasan for M/s.G.Baskar, learned counsel for therespondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 24.10.2014 made in I.TA.No.1971/Mds/2014 on the https://hcservices.ecourts.gov.in/hcservices/ file of the Income Tax Appellate Tribunal, Chennai, “B” Bench(for brevity, the Tribunal) for the Assessment Year 2010-11. 3.The appeal was admitted on the following substantialquestion of law:“Whether on facts and circumstances of thecase, the Hon'ble ITAT is right in holding thatthe ship operated by the assessee namely“M.V.Gem of Ennore” transporting thermal coalfrom one port to another within India was aqualifying ship u/s.115 VD of the Income TaxAct and the assessee was entitled for thebenefit of Tonnage Tax Scheme (TTS) providedunder Chapter XII G of the Act, which iscontrary to the plain meaning of clause (1) ofSection 115 VD of the Income Tax Act?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is 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 this case is lessthan the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- mkn To https://hcservices.ecourts.gov.in/hcservices/