Commissioner Of Income Taxchennai v. M/S. Bgr Energy System Limitedguna Building, Anna Salai, 433Teynampet, Chennai 600 018.[

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12.11.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMARAND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.No.279 of 2023 Commissioner of Income TaxChennai...Appellant Vs. M/s. BGR Energy System LimitedGuna Building, Anna Salai, 433Teynampet, Chennai 600 018.[PAN ]..Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal Madras “A” Bench dated 21.09.2022 passed in I.T.A.No.28/CHNY/2021. For the Appellant:Mr.Karthik RanganathanSenior Standing Counsel For the Respondent:Mr.R.Sivaraman JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.)The present tax case appeal was admitted on 08.06.2023 on the following substantial questions of law:- https://www.mhc.tn.gov.in/judis "1.Whether in the facts and circumstnace of the T.C.A.No.279 of 2023 case, the Tribunal is right in restricting the disallowance of expenditure u/s. 14A read with Rule 8D to the extent of exempt income earned even though there is no express provision in Section 14A and Rule 8D, restricting the disallowance u/s. 14A to the extent of exempt income earned by the assessee? 2. Whether in the facts and circumstance of the case, the Tribunal erred in law in observing that the amendment made to Section 14A by the Finance Act, 2022 will take effects from 1st April, 2022, ignoring the express provision that the amendment was inserted "for the removal of doubts" and hence have retrospecitve application? 3. Whether in the facts and circumstance of the case, the Tribunal was justified in law, in holding that the book profit computed under the provision of Section 115jb of the IT Act shall not be increased by the sum attributable to 14A disallowance, whereas clause (f) of explanation 1 to Section 115JB(2) of the Act clearly states that "book profit the purposeof Section 115JB of the IT Act shall be increased by the amount or amount of expenditure relatable to any income to which Section 12 apply?" 2. It is submitted by the learned Senior Standing Counsel appearing for the appellant Revenue that this matter is covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. 3. Hence, this appeal stands dismissed, as covered under the low tax effect and the substantial questions of law raised in this appeal are kept open to be decided at the later point of time. There shall be no order as to costs. (R.S.K., J.) (C.S.N, J) 12.11.2024 Neutral Citation:Yes/No drm https://www.mhc.tn.gov.in/judis T.C.A.No.279 of 2023 R. SURESH KUMAR, J.ANDC. SARAVANAN, J.(drm) T.C.A.No.279 of 2023 12.11.2024