Principal Commissioner Of Income Tax-6, Chennai-34 v. M/S.sundaram Claytons Ltd.,Chennai-6

In the High Court of Judicature at MadrasDated : 02.1.2019 The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.218 of 2018 Principal Commissioner of Income Tax-6, Chennai-34...Appellant/Appellant Vs M/s.Sundaram Claytons Ltd.,Chennai-6....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 05.5.2017 in ITA No.2936/Mds/2016 on thefile of the Income Tax Appellate Tribunal Madras 'B' Bench forthe assessment year 2006-07 against the order of theCommissioner of Income Tax (Appeals) 15,121, Mahathma GandhiRoad, Nungambakkam, Chennai 34 order dated 15.07.2016 and madein I.T.A. No. 581/CIT(A) -15/13-14 for the Assessment year 2006-2007 and against the order of the Assistant Commissioner ofIncome Tax, Company Circle VI(4) Chennai 121, Mahathma GandhiRoad, Nungambakkam Chennai 34 order dated 27/01/2014 and made inPAN-AAACS492oJ for the Assessment year 2006-2007. Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The Revenue has filed the appeal byraising the following substantial question of law : “Whether the Appellate Tribunal wasright in holding that Rule 8D is notapplicable for the pending proceedings https://hcservices.ecourts.gov.in/hcservices/ relating to assessment year 2006-07 when theIncome Tax Rules are held to be proceduralin nature and applicable for all pendingproceedings as held by the Apex Court in thecase of CWT Vs. Sharavan Kumar Swarup & Sons[reported in 210 ITR 886] ?” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial question of law raised is leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. True Copy Sub-Assistant Registrar To1.The Income Tax Appellate Tribunal, Madras 'B' Bench.2. The Commissioner of Income Tax( Appeals)-15Chennai 34. 3. The Assistant Commissioner of Income Tax Company Circle VI(4) Chennai 34 RV(CO)SP(18/02/2019)