Commissioner Of Income Tax,Chennai v. M/S.simpson & Co. Ltd.,861/862, Anna Salai,Chennai-600 002

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.233 of 2017 Commissioner of Income Tax,Chennai... Appellant -vs- M/s.Simpson & Co. Ltd.,861/862, Anna Salai,Chennai-600 002.PAN: .. Respondent Appeal under Section 260A of the Income-tax Act, 1961,againsttheorderdated22.12.2016,madeinI.T.A.No.2329/Mds/2016 on the file of the Income Tax AppellateTribunal 'C' Bench, Chennai for the assessment year 2012-13against the order of the Commissioner of Income Tax (Appeals)17,121 Mahathma Gandhi Road, Nungambakkam, Chennai 34 dated30.03.2016 I.T.A.No.63/2014-2015/CIT(A)-17 PAN No. AAACS4909Ffor the Assessment year 2012-2013 and against the order of theDeputy Commissioner of Income Tax, LTU II, Chennai Room No. 4Ground Floor 1775, Jawaharlal Nehru Annex Road, Anna NagarWesternExtensionChennai101dated31.12.2014Dist/Ward/circle/LTU II, Chennai PAN/GIR No. for theAssessment year 2012-2013 respectively. This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated22.12.2016, made in I.T.A.No.2329/Mds/2016 on the file of theIncome Tax Appellate Tribunal 'C' Bench, Chennai for the https://hcservices.ecourts.gov.in/hcservices/ assessment year 2012-13. 2.The appeal has been admitted on 01.06.2017, on thefollowing substantial questions of law:-“(i) Whether investments made in sisterconcerns/subsidiary companies are liable to bedisallowed under Section 14A of the Income Tax Actand Rule 8D of the Income Tax Rules?(ii) Whether the provisions of Section 14A ofthe Income Tax Act are applicable to investment inshares of sister concerns yielding dividend incomeexempt from income tax? and(iii) Whether the benefit of depreciation inany financial year can be carried over to anylater year?” 3.Heard Mr.T.Ravikumar and Ms.R.Hemalatha, learned SeniorStanding Counsel for the appellant – and Mr.R.Venkatanarayana,learned counsel, for M/s.Subbaraya Aiyar Padmanabhan & Ramamani,for the respondent. 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.17/2019,dated 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 on account of the low tax effect. Thesubstantial questions of law framed are 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. s/d- Assistant Registrar(CS V) True Copy Sub-Assistant Registrar abr To 1.The Income Tax Appellate Tribunal 'C' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals)17, NungambakkamChennaiChennai 3.The Deputy Commissioner of Income Tax, LTU II, Chennai +1 CC to Mr.T.Ravikumar, Advocate sr 74352. +1 CC to Ms. Subbaraya Aiyar, Advocate sr 75144. T.C.A.No.233 of 2017 AD(CO)SP(04/11/2019)