Commissioner Of Income Taxchennai Iii v. M/S.rane Brake Limings Ltd“Maithri”

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.12.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.639 of 2009 Commissioner of Income TaxChennai III...Appellant Vs. M/s.Rane Brake Limings Ltd“Maithri”, 132, Cathedral RoadChennai 600 086....Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Chennai 'D' Bench, Chennai, dated 22.01.2009 made inITA No.651/Mds/2008 for the Assessment Year 2003-04. against the order of the Commissioner of Income Tax ChennaiIII, Chennai, dated 14/01/2008 made in C.No. 3033/14/III/2007-08 for the assessment year 2003-04. against the order of the Income Tax Officer(OSD), CompanyCircle V, (3), Chennai – 34, dated 27/03/2006 made in undersection 143(2) of the Income Tax Act. For Appellant : Mr.T.Ravikumar, Senior Standing Counsel For Respondent : Mr.R.Venkatanarayanan for Mr.Subbaraya Aiyar Padmanabhan J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'D' Bench, Chennai by raisingthe following substantial questions of law: "(i) Whether on the facts and in the circumstancesof the case, the Appellate Tribunal was right in https://hcservices.ecourts.gov.in/hcservices/ holding that Section 14A would apply only toincomes exempted under Section Chapter III of theIncome Tax Act and not to all income or part ofincome not forming part of the total income asfinally computed under the various provisions ofthe Income Tax Act?(ii) Without prejudice to the proceeding questionwhether the Income Tax Appellate Tribunal wasright in not upholding the order of theCommissioner of Income Tax following the decisionsof the Supreme Court in 155 ITR 120 and 200 ITR488 as per which the deduction under Section 80Mhad to be allowed only on the net dividend incomeafter deducting the direct expenditure andproportionate indirect expenditure incurred forearning such dividend income?” 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.3/2018 dated 11.7.2018 wherein it is stipulatedthat appeals shall not be filed/pursued by the Departmentbefore the High Court in cases where the tax effect does notexceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appealfiled by the Revenue is dismissed as not pressed, keeping openthe substantial questions of law for determination in anappropriate case. //True Copy// Sd/- Assistant Registrar (CS-VIII) Sub Assistant Registrar KST TO 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai. Chennai 'D' Bench, Chennai. 2.The Commissioner of Income Tax, Chennai III, Chennai. Chennai III, Chennai. 3.The Income Tax Officer(OSD), Company Circle-v, Chennai-34.+1cc to Mr.Subbaraya Aiyar, Advocate, S.R.No. 100691+1cc to Mr.T.Ravikumar, Advocate, S.R.No. 100579 TCA No.639 OF 2009 GP(CO)GN(20/01/2020)