Tca/1/2018 Of The Commissioner Of Income Tax v. Tamil Nadu Urban Development

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE HULUVADI G.RAMESHANDTHE HONOURABLE MR.JUSTICE K.KALYANASUNDARAM Tax Case Appeal No.1 of 2018 The Commissioner of Income tax,Chennai. ...Appellant/Respondent-vs-M/s.Tamil Nadu Urban Development Fund,No.19, T.P.Scheme Road, Raja Street Extension,Raja Annamalaipuram, Chennai-600 028. ...Respondent/Appellant Appeal filed under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal, Madras'A' Bench, Chennai, dated 09.05.2017 made in ITANo.2550/Mds/2016 against the order passed by the Commissioner ofincome tax (Appeals)-2, Chennai 600 034 dated 30.06.2016 made inITA.No.61/CTI(A)-2/2014-25 for the Assessment year dated 2011-12and against the order passed by the Deputy Commissioner ofIncome Tax, Business Circle-II, Chennai dated 26.03.2014 made inPAN.No/GIR.AAATTO859N. for the Assessment year 2011-12. JUDGMENT(Delivered by HULUVADI G.RAMESH, J.) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, Madras 'A' Bench, Chennai, dated09.05.2017 made in ITA No.2550/Mds/2016, and the same wasadmitted by this Court on 27.02.2018 on the followingsubstantial question of law:"Whether the Tribunal was right in holding thatno disallowance is to be made under Section 14A ofthe Income Tax Act, 1961, in respect of interestexpenditure made on borrowed funds on the groundthat the assessee had own funds when the provisionsof Act and Rule 8D does not provide for any suchexception?”https://hcservices.ecourts.gov.in/hcservices/ 2.When the matter is taken up for admission, the learnedStanding Counsel appearing for the appellant brought to ournotice the Circular instruction issued by the Central Board ofDirect Taxes vide Circular No.3/2018 dated 11.07.2018 wherein itis stipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the appeal is dismissed asnot pressed, preserving the substantial question of law fordetermination in an appropriate case. No costs. Sd/- Assistant Registrar(CS-V) //True Copy// Sub Assistant Registrar KMTo1. The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai.2. The Commissioner of Income Tax(Appeals)-2, Chennai-34.3. The Deputy Commissioner of Income TaxBusiness Circle-II, Chennai.+ 1 cc to Mr.T. Ravikumar, Advocate Sr.75605+ 1 cc to M/s. Arun Kumar, Advocate Sr.76066Tax Case Appeal No.1 of 2018SR(CO)EU(04/12/2018) https://hcservices.ecourts.gov.in/hcservices/