Principal Commissioner Of Income Tax 6 v. M/S.shriram City Union Finance Co.ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.01.2020 THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN Principal Commissioner of Income Tax 6,No.121, Nungambakkam High Road,Chennai 600 034. ... Appellant Vs M/s.Shriram City Union Finance Co.Ltd.,No.4, Mookambika Complex,Lady Desika Road,Mylapore, Chennai - 600 004.PAN: AAACS 7703H ...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income TaxAct, 1961 against the order dated 07.06.2017 inI.T.A.No.506/Mds/2016 on the file of the Income Tax AppellateTribunal Chennai 'B' Bench for the assessment year 2012-13preferred against the order dated 24/09/2015 of Commissioner ofIncome Tax(Appeals)-15, Chennai in ITA.NO.262/CIT(A)-15/14-15for the Assessment year 2012-2013 against the order dated27.02.2015 passed by the Deputy Commissioner of Income Tax,Corporate Circle 6(1), Chennai-34. For Appellant : Mr.J.Narayanasamy, Senior Standing Counsel. (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This tax case appeal has been filed against the order ofthe Income Tax Appellate Tribunaldated 07.06.2017 inI.T.A.No.506/Mds/2016 in partly allowing the appeal filed by theassessee against the order of the Commissioner of Income Tax(Appeals) by which the appeal filed by the assessee was partlyallowed. 1/3 https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mr.J.Narayanasamy, learned Senior Standing Counselfor the appellant. 3.This tax case appeal is admitted on the followingsubstantial question of law:"Whether the Appellate Tribunal was correctholding that the Assessing Officer has not recorded hissatisfaction before making disallowance Section 14Aread with Rule 8D of the Income Tax Rules, whereas theAssessing Officer has dealt the same at page 24 in theassessment order?" 4. Mr.J.Narayanasamy, learned Senior Standing Counselappearing on behalf of the appellant would submit that the taxeffect in this case is less than Rs.1 crore and is covered byCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Department of Revenue, Ministryof Finance, Government of India, Delhi. As per the saidcircular, the monetary limit to file an appeal before the HighCourt is fixed at Rs.1 crore. In this case, tax effect is lessthan Rs.1 crore and therefore, the appeal has to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para 3of the Circular mentioned above and accordingly, thetable for monetary limits specified in Para 3 of theCircular shall read as follows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, this Tax Case Appeal isdismissed on account of tax effect. However, the substantial 2/3 https://hcservices.ecourts.gov.in/hcservices/ question of law framed is left open. In the event the taxeffect is above the 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. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar ay To 1.Principal Commissioner of Income Tax,6No.121, Nungambakkam High Road,Chennai 600 034. 2.The Deputy Commissioner of Income Tax,Corporate Circle-6(1),Aayakar Bhavan, New Block, 121,MG Road, 7th floor, Chennai-600 0343.The Commissioner of Income Tax(Appeals)-15,121, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034.T.C.A.No.428 of 2018pm(co)nr 21/02/2020 3/3