Principal Commissioner Of Income Tax-4, Chennai-34 v. M/S.karmen International Pvt. Ltd., Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 30.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.408 of 2016 Principal Commissioner of Income Tax-4, Chennai-34..Appellant/RespondentVsM/s.Karmen International Pvt.Ltd., Chennai-602107....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 28.10.2015 made in MP.No.106/Mds/2015 inITA.No.57/Mds/ 2015 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2010-11 andagainst the order of Income Tax Appellate Tribunal'B' BenchChennai and made in ITA.No.57/Mds/2015 dated 29/05/2015 andagainst the order of the Commissioner of Income Tax Appeals-II,Chennai -34 made in ITA.No.592/2013-14 dated 18/09/2014 andagainst the order of the Deputy Commissioner of Income Tax,Chennai -34 and made in PAN.GIR.No. , dated 28/02/2013for the Assessment year 2010-2011.For Appellant:Mr.Karthik Ranganathan, SSC assisted byMr.S.Rajesh, SCFor Respondent:Mr.A.S.Sriramanfor S.Sridhar We have heard Mr.Karthik Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated28.10.2015 made in MP.No. 106/Mds/2015 in ITA.No.57/Mds/2015 on https://hcservices.ecourts.gov.in/hcservices/ the file of the Income Tax Appellate Tribunal, Chennai 'B' Benchfor the assessment year 2010-11. 3. The appeal was admitted on 20.6.2016 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in directing theAssessingOfficertorestrictthedisallowance under Section 14A only upto theexempt income earned by the assesseeignoring the computation provided underSection 14A read with Rule 8D of the IncomeTax Rules ?ii. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in law in holding thatthe quantum of exempt income is relevant forthe disallowance computed as per Section 14Aread with Rule 8D?” 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 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. Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench,Chennai. 2.The Commissioner of Income Tax(Appeals)-II, Chennai. 3.The Deputy Commissioner of Income Tax, Company Circle-II(4), Chennai. +1 cc to M/s.Sridhar,Advocate Sr.No. 76083 AKM/16.10.19/3P-5C / TCA.No.408 of 2016