Commissioner Of Income Tax, Non Corporate Circle, Chennai v. M/S.arun Excello Homes Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 28.08.2019 THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.452 of 2018 Commissioner of Income Tax,Non Corporate Circle, Chennai. ...AppellantVs M/s.Arun Excello Homes Pvt. Ltd.,18, Bhattad Towers, West Cott Road,Royapettah, Chennai - 600 014.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 31.01.2018 made in ITA.No.2197/MDS/2017 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2012-13 and against the Order dated17.07.2017, made in ITA No.129/CIT(A)-13/2012-13 on the file ofthe Commissioner of Income Tax (Appeals)-13, Chennai andagainst the Order dated 02.12.2016, made u/s.143(3), r.w.s 263of the Income Tax Act 1961 on the file of the Asst. Commissionerof Income Tax, Non Corporate Circle, Chennai. For Respondent: No appearance We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Ms.V.Pushpa, learned Standing Counsel appearing forthe appellant/revenue. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated31.01.2018 made in ITA.No.2197/MDS/2017 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for theassessment year 2012-13. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 03.09.2018 on the followingsubstantial question of law : “Whether the Tribunal was right in holdingthat the provision of Section 14A read with Rule8D will have no applicability if there is noexempt income received/earned during theprevious year, though the disallowance is linkedto expenditure incurred on investment fetchingexempt income?" 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 08.8.2019 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 on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. To1.The Income Tax Appellate Tribunal, Chennai 'A' Bench, Chennai. 2. The Commissioner of Income Tax (Appeals)-13, Chennai. 3. The Asst. Commissioner of Income Tax, Non Corporate Circle II,Chennai-6. https://hcservices.ecourts.gov.in/hcservices/