Tca/357/2014 Of Commissioner Of Income Tax v. M/S Shanthi Fortune India Pvt

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.357 OF 2014 Commissioner of Income Tax, Chennai... Appellant-vs- M/s.Shanthi Fortune (India) P. Ltd.,C/o.Shri S.Sridhar, Advocate,112/1, Periyar Street,Erode-638 001. .. Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 08.10.2013, made in I.T.A.No.1598/Mds/2013 onthe file of the Income Tax Appellate Tribunal 'B' Bench, Chennaifor the assessment year 2010-11. against the order of theCommissioner of Income Tax (Appeals)-II Coimabatore dated28.06.2013 and made in AAJCS4289D/CMBS08490G and against theorder of the Income Tax Officer TDS Ward I(3), Coimbatore dated18.03.2011 for the Assessment year 2010-11 For Appellant:Mr.Karthik Ranganathan,Senior Standing Counsel:assisted by Mr.S.Rajesh,Standing Counsel For Respondent :M/s.IPN Associates This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated08.10.2013, made in I.T.A.No.1598/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2010-11. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on 11.08.2014, on thefollowing substantial question of law:- “Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that proceedings under Section201(1) cannot be initiated against the assesseeand consequently interest under Section 201(1A)cannot be levied on the assessee with respect tointerest credited towards the account offinanciers on the loan availed by the assessee onthe ground that the assessee and the financiershad entered into agreement whereby the interestwas waived by the financiers and in view ofSection 194A(4) of the Act?” 3.Heard Mr.Karthick Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned Standing Counsel forthe appellant. 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 question of law framed is left open. In the eventthe 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. abr https://hcservices.ecourts.gov.in/hcservices/ To 1. The Income Tax Appellate Tribunal 'B' Bench, Chennai. Chennai. 2. The Commissioner of Income Tax (Appeals)-II, O/o.The Commissioner of Income Tax (Appeals)-II, Coimabatore. 3. The Income Tax Officer, TDS Ward I(3), O/o.The Income Tax Officer, TDS Ward I(3), 347A Kings Complex Dr.Nanjappa Road, Coimabatore. +1cc to M/s.IPN Associates, Advocate, S.R.No.73826 T.C.A.No.357 of 2014 MP(CO)CS/31/10/2019