Tca/227/2014 Of The Commissioner Of Income Tax v. M/S Eih Associated Hotels

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.227 of 2014 The Commissioner of Income-tax,Chennai. ... Appellant-vs- M/s.EIH Associated Hotels Ltd.,1/24, GST Road,Meenambakkam, Chennai-600 027. ... Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 17.07.2013, made in I.T.A.No.1624/Mds/2012 onthe file of the Income Tax Appellate Tribunal 'C' Bench, Chennaifor the assessment year 2008-09, Appeal against the order dated 11/05/2012 made in ITANo.753/10-11/A-III on the file of the Mahatma Gandhi Road,Chennai-600 034 for the Assessment Year 2008-2009. Appeal against the order dated 31/12/2010 made in PAN/GIRNo. on the file of the Deputy Commissioner of IncomeTax Company Circle 11(1) Chennai for the Assessment year 2008-2009. For Appellant:Mr.Karthik Ranganathan, SSC :assisted by Mr.S.Rajesh, Standing Counsel This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated17.07.2013, made in I.T.A.No.1624/Mds/2012 on the file of theIncome Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2008-09. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on 15.07.2014, on thefollowing substantial questions of law:- “(i) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin directing the Assessing Officer to re-computethe average value of investment made under theprovisions of Rule 8D after deleting investmentmade by the assessee in the subsidiary company? (ii) Whether on the facts and circumstances ofthe case, the Tribunal was right in upholding theorder of CIT(A) in restricting the disallowancemade under Section 14A read with Rule 8D amountingto Rs.34.20 lakhs while computing book profitunder Section 115JB of the Income Tax Act? (iii) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that the payments made either towardsreimbursement of expenses or rendering serviceoutside India would not fall under the ambit ofincome accrued or arisen in India as envisagedunder Section 9(1) of the Income Tax Act?(iv) Whether the finding of the Tribunal isproper in holding that provision of Section 40(a)(i) is not attracted and no tax is liable to bededucted?” 3.Heard Mr.Karthik Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned Standing Counsel forthe appellant – and Mr.Suhrith Parthasarathy, learned counseland Mr.K.Vimal Kumar, learned counsel for the respondent. 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.17/2019,dated 08.08.2019 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 event https://hcservices.ecourts.gov.in/hcservices/ the 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. 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 event https://hcservices.ecourts.gov.in/hcservices/ the 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. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar(abr)To1.The Income Tax Appellate Tribunal 'C' Bench, Chennai.2.The Commissioner of Income Tax (Appeals)-III, 121, Mahatma Gandhi Road, Chennai-600 034.3.The Deputy Commissioner of Income Tax, Company Circle 11(1), Chennai.T.C.A.No.227 of 2014ln[co]srg 14/11/2019