Principal Commissioner Of Income Tax-2 v. M/S.farida Shoes Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 20.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN andTHE HONOURABLE MR.JUSTICE P.VELMURUGANT.C.A.Nos.150 & 151 of 2018 Principal Commissioner of Income Tax-2No.108, Mahatma Gandhi Road,Chennai 600 034.... Appellant (in both appeals)Vs M/s.Farida Shoes Pvt. Ltd.,No.151/4, Mount Poonamallee Road,Ramapuram, Chennai 89.PAN: AAACF 0496Q... Respondent (in both appeals) PRAYER in T.C.A.No.150 of 2018: Appeal under Section 260Aof Income Tax Act, 1961 against the order of the IncomeTax Appellate Tribunal Madras “A” Bench, dated08.01.2016 in ITA.No.2102/Mds/2015.PRAYER in T.C.A.No.151 of 2018: Appeal under Section 260Aof Income Tax Act, 1961 against the order of the IncomeTax Appellate Tribunal Madras “A” Bench, dated08.01.2016 in ITA.No.2103/Mds/2015. Prayer in TCA.NO.150&151/2018:Appeal against the order of the Income Tax AppellateTribunal Madras A Bench, dated 8.01.2016 inITA.No.2102,2103/mds/2015againstyear2011&2012-2012&2013 against the order of the Deputy commissionerincome Tax PAN: AAACF 0496Q Assessment Year 2012-2013dated 22.01.2015 against Deputy commissioner Income TaxSalary circle-I,Chennai PAN/GIR: AAACF 0496Q AssessmentYear 2011-2012 order dated 10.03.2014. For Appellant :Mr.Karthik Ranganathan Senior standing counsel(in both appeals)For Respondent:Mr.Philip George(in both appeals) (Judgment of the Court was delivered by N.KIRUBAKARAN,J) The Appeals have been preferred by the Revenueagainst the order of the Income Tax Appellate Tribunal“A” Bench, Chennai, dated 08.01.2016 in ITA.Nos.2102 &2103/Mds/2015 for the Assessment years 2011-12 & 2012-13. 2.The orders of the CIT(A) in ITA No.7 & 243/CIT(A)-6/14-15 dated 18.05.2015 were challenged before theTribunal by the Revenue in ITA Nos.2102 & 2103/Mds/2015.The Appellate Tribunal rejected the contention of theRevenue and dismissed the same. Against the order of theAppellate Tribunal only, present appeals have been filed. 3.These appeals were admitted on 10.04.2018 on thefollowing substantial questions of law : “(i).Whether the Tribunal erred in law inholding that in computing disallowance underSection 14A of the Income Tax Act, 1961 readwith Rule 8D(ii) of the Income Tax Rules, 1962,interest pertaining to loss taken for businesspurposes would have to be excluded? (ii).Whether the Tribunal erred in deleting theproportionate disallowance of foreign travelexpenses of a Director? (iii).Whether the decision of the Tribunal isvitiated by an error with regard to theprovisions of the Income Tax Act under whichaddition and/or disallowance were made by theAssessing Officer?" 4.Mr.Karthik Ranganathan, learned Senior StandingCounsel appearing on behalf of the appellant would submitthat the tax effect in these cases are less than Rs.1crore and are covered by Circular No.17/2019 dated08.08.2019 issued by the Director, Central Board ofDirect Taxes, Department of Revenue, Ministry of Finance,Government of India, Delhi. As per the said circular,the monetary limit to file an appeal before the HighCourt is fixed at Rs.1 crore. In these cases, tax effectis less than Rs.1 crore and therefore, these cases haveto be dismissed. 5.This Court perused the circular dated 08.08.2019and Paragraph No.2 of the said Circular, which prescribesmonetary limit for filing appeal is usefully extracted asfollows:https://hcservices.ecourts.gov.in/hcservices/ 2.As a step towards further management oflitigation, it has been decided by the Boardthat monetary limits for filing of appeals inincome-tax cases be enhanced further throughamendment in Para 3 of the Circular mentionedabove and accordingly, the table for monetarylimits specified in Para 3 of the Circularshall read as follows: 5.This Court perused the circular dated 08.08.2019and Paragraph No.2 of the said Circular, which prescribesmonetary limit for filing appeal is usefully extracted asfollows:https://hcservices.ecourts.gov.in/hcservices/ 2.As a step towards further management oflitigation, it has been decided by the Boardthat monetary limits for filing of appeals inincome-tax cases be enhanced further throughamendment in Para 3 of the Circular mentionedabove and accordingly, the table for monetarylimits specified in Para 3 of the Circularshall read as follows: 6.In view of the submissions made by the learnedcounsel appearing on behalf of the appellant and also inview of the Circular No.17/2019 dated 08.08.2019 issuedby the Director, Central Board of Direct Taxes, Delhi,the Tax Case Appeals are dismissed on account of taxeffect. However, the substantial questions of law framedis left open. In the event the tax effect is above thelimit fixed in the said circular, liberty is granted tothe Revenue to make a mention to this Court to restorethe appeals to be heard and decided on merits. No costs. saiTo1.The Principal Commissioner of Income Tax-2No.108, Mahatma Gandhi Road,Chennai 600 034. 3.The Deputy Commissioner of Income tax ,Salary circle I,Chennai 4.The Deputy commissioner of Income tax,Corporate circle 2(1), Room No.511,Wanapathy Block,121, Mahatma gandhi Road,Nungambakkam,chennai 34. https://hcservices.ecourts.gov.in/hcservices/