Commissioner Of Income Tax,Company Circle Iii, Chennai v. M/S.vestas Wind Technology India Pvt. Ltd

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.772 of 2015 Commissioner of Income Tax,Company Circle III, Chennai....Appellant Vs M/s.Vestas Wind Technology India Pvt. Ltd.,298, Old Mahabalipuram Road,Sholinganallur, Chennai - 600 119.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 27.03.2015 made in ITA.No.68/MDS/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2007-08. Appeal Against the order dated 10-9-13 made in ITANo.1092/2013-14 on the file of the commissioner of Income Tax(Appeals)-III, Chennai for the Assessment Year 2007-08. Appeal Against the order dated 29-12-2010 made in PANNo.AAACA9274F on the file of the Additional Commissioner ofIncome Tax, Company Range-III, Chennai for the Assessment year2007-08. For Appellant : Mr.M.Swaminathan, SSC and Ms.V.Pushpa, SC For Respondent: No appearance.JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Ms.V.Pushpa, learned Standing Counsel appearing forthe appellant/revenue. 1 https://hcservices.ecourts.gov.in/hcservices/ 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated27.03.2015 made in ITA.No.68/MDS/2014 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench for the assessmentyear 2007-08. 3.The appeal was admitted on 15.09.2015 on the followingsubstantial question of law :“Whether on the facts and circumstances of thecase, the Income Tax Appellate Tribunal was rightin holding that the disallowance of prorateinterest expenditure on account of interest freeadvances to its subsidiary company was notwarranted especially when the Hon'ble Supreme Courtin the case of M/s.Tulip Star Hotels Limited inC.A.No.(CC).7138-7140 of 2012 by an order dated30.04.2012 has held that the judgment delivered inthe case of S.A.Builders requires consideration andis pending for consideration before the LargerBench?" 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. Sd/- Assistant Registrar cseTo 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. Chennai 'A' Bench. 2 2.The Commissioner of Income Tax(Appeals)-III, Chennai. Chennai. 3.The Additional Commissioner of Income Tax, Company Range-III, Chennai Company Range-III, Chennai +1cc to Mr.M.Swaminathan, Advocate SR.73572 TCA.No.772 of 2015 LN(CO)CB(13/11/2019)