Tc/919/2008 Of Commissioner Of Income Tax v. Parma And Vijay Investment

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR M/s.Parma & Vijay Investment & Financing Co. P. Ltd.,(Now merged with Adyar GateHotels Ltd.),132, TTK Road, Chennai 600 018.... Respondent Tax Case filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal, 'B'Bench, Chennai, dated 17.12.2007 made in ITA No.1965/Mds/2007, preferred against the order dated 23/03/2007 passed by theCommissioner of Income Tax (Appeals)-V, Chennai in ITA No.337 of2004-05 preferred against the order of the AssistantCommissioner of Income Tax, Company Circle-V(1) Chennai dated24/10/2004 for the Assessment Year 2002-2003. This Tax Case has been filed by the Revenue, calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'B' Bench, Chennai, dated 17.12.2007 made inITA No.1965/Mds/2007, for the Assessment Year 2002-2003, byraising the following substantial question of law:"Whether on the facts and circumstances of the case,the Tribunal was right in holding that interest paid https://hcservices.ecourts.gov.in/hcservices/ on loans borrowed for subscribing to the rightsissue of a company should be treated as a businessexpenditure, even tough the dividends earned are tobe treated as income from other sources?" 2. When the matter is taken up for hearing, learned SeniorStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed, as withdrawn, keeping open thesubstantial question of law for determination in appropriatecases. No costs. Sd/- Deputy Registrar //True Copy// Sub Assistant Registrar ssk. To 1. Income Tax Appellate Tribunal, 'B' Bench, Chennai. 2. Commissioner of Income Tax Chennai. 3. The Assistant Commissioner ofIncome-tax, Company Circle I(1), Chennai. 4.The Commissioner of Income Tax(Appeals)-V, Chennai-34. Chennai-34. 5.The Assistant Commissioner of Income Tax, Company Circle V(1), Chennai-34. Company Circle V(1), Chennai-34. pm[co]srg 29/01/2020 T.C.No.919 of 2008