Commissioner Of Income Tax,Trichy v. M/S.v.r.v. & Co

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.783 to 785 of 2014 Commissioner of Income Tax,Trichy... Appellant in all Appeals -vs- M/s.V.R.V. & Co.,40, THSS Road,Kumbakkonam... Respondent in all Appeals APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 18.02.2014, made inI.T.A.Nos.2252, 2253 & 2254/Mds/2012 on the file of the IncomeTax Appellate Tribunal 'A' Bench, Chennai against the order ofthe Commissioner of Income Tax (Appeals), Tiruchirapalli 620 001dated 27/09/212 in ITA.No.258/07-08,342/08-09, 341/08-09,213/10-11 and 212/10-11 against the assessment orders of theIncome tax officer, ward-1(1) Kumbakonam dated 09/12/2010 and31/12/2008 for the assessment year 2004-2005, 2006-2007 & 2008-2009.For Appellant:Ms.V.Pushpa,(In all Appeals)Standing Counsel &Mr.M.Swaminathan,Senior Standing Counsel For Respondent :Mr.A.S.Sriraman,(In all Appeals)For Mr.S.Sridhar These appeals filed by the Revenue under Section 260A of theIncome-tax Act, 1961 are directed against the common order dated18.02.2014, made in I.T.A.Nos.2252, 2253 & 2254/Mds/2012 on thefile of the Income Tax Appellate Tribunal 'A' Bench, Chennai forthe assessment years 2004-05, 2006-07 and 2008-09 respectively. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeals were admitted on 03.12.2014, on thefollowing substantial questions of law:-“(i) Whether the Tribunal was right in treatingthe accrued interest on entire loans as bad debtand allowing the claim for deduction of bad debtsfor the assessment years 2004-2005, 2006-2007 and2008-2009 on the ground that the said bad debt waswritten off in the books of accounts even thoughthe assessee had realised the loans partially?(ii) Whether the Tribunal was right in holdingthat interest accrued on outstanding debtorsbalances need not be admitted when assessee isfollowing mercantile system of accounting?” 3.Heard Ms.V.Pushpa, learned Standing Counsel andMr.M.Swaminathan, learned Senior Standing Counsel for theappellant and Mr.A.S.Sriraman, learned counsel for Mr.S.Sridhar,learned counsel for the respondent. 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 caseappeals are 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 appeals to be heard and decided onmerits. No costs. Sd/- Asst.Registrar (CS III ) /true copy/ abr To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai . 2.The Commissioner of Income Tax(Appeals) No.44Williams Road, Cantonment, TiruchirapalliWilliams Road, Cantonment, Tiruchirapalli 3.The Income tax Officer ward 1 (1) Kumbakkonam +1 cc to M/s.M.swaminathan Advocate sr73076 +1 cc to Mr.S.Sridhar Advocate sr72500 T.C.A.Nos.783 to 785 of 2014 rk(co)aa22/10/2019