Principal Commissioner Of Income Tax 2 v. M/S.eih Associated Hotels Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R. HEMALATHA Principal Commissioner of Income Tax 2,No.121, Mahatma Gandhi Road,Chennai.... Appellant Vs. M/s.EIH Associated Hotels Ltd.,1/241, GST Road, Meenambakkam,Chennai – 600 027.... Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, “B” Bench, dated 22.08.2016 inI.TA.No.1550/Mds/2016, Assessment Year 2007-08 filed againstthe order of the Income Tax (Appeals) dated 23/03/2016 inITA.No. 14/CIT (A) -6/2011-12 preferred against the orderdated 17/02/2011 passed by the Deputy Commissioner of IncomeTax, Company Circle II (1), Chennai in PAN.No. AACE 2125M forthe assessment Year 2007-2008. For Appellant : Mr.Karthik Ranganathan Senior Standing CounselFor Respondent : Mr.M.Kaushik for Mr.S.Sridhar JUDGMENT We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Mr.M.Kaushikfor Mr.S.Sridhar, learned counsel for the respondent/assessee.2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainsttheorderdated22.08.2016madeinI.TA.No.1550/Mds/2016 on the file of the Income Tax AppellateTribunal, Chennai, “B” Bench (for brevity, the Tribunal) forthe Assessment Year 2007-08. 3.The appeal was admitted on the following substantialhttps://hcservices.ecourts.gov.in/hcservices/question of law: “Whether the Tribunal was right in holdingthat the expenditure incurred to earn exemptincome could not be added to book profitcomputed under Section 115JB of the Income TaxAct, 1961?” 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 08.08.2019 issued by the Central Board of Direct Taxes.By the said Circular, the monetary limit for filing orpursuing an appeal before the High Court has been increased toRs.1 crore. It is further submitted that the tax effect inthis case is less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial question of law framed is leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Nocosts. mkn Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai, “B” Bench. Chennai, “B” Bench. 2.The Deputy Commissioner of Income Tax, Company Circle II (1), Chennai.