Tca/480/2014 Of Commissioner Of Income Tax v. M/S Archean Cranites Private

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.480 of 2014 Commissioner of Income Tax,Central Circle,Chennai. ...Appellant-vs- M/s.Archean Granites Private Limited,TVH Phase II, 5[th] Floor,Bellicia Towers, MRC Nagar,Chennai-600 028.PAN: AAACA 7344J ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 19.06.2013 made in I.T.A.No.2288/Mds/2012 on thefile of the Income Tax Appellate Tribunal 'A' Bench, Chennai forthe assessment year 2007-08. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel &Ms.K.G.Usha Rani,Standing Counsel For Respondent:Mr.G.Baskar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel for theappellant-Revenue and Mr.G.Baskar, learned counsel appearing forthe respondent-assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated19.06.2013 made in I.T.A.No.2288/Mds/2012 on the file of theIncome Tax Appellate Tribunal 'A' Bench, Chennai for theassessment year 2007-08. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 01.09.2014 on the followingsubstantial questions of law:- “1.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting thedisallowance of Rs.36,44,927/- made underSection 14A read with Rule 8D of the IncomeTax Rules, 1962?2.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal failed to note thatSection 14A was inserted in the Finance Act,2001 with retrospective effect from01.04.1962, Rule 8D was introduced witheffect from 24.3.2008 and Rules beingprocedural in nature, the AssessingOfficer's disallowance under Section 14Aread with Rule 8D in the assessment made on29.12.2009 is in accordance with law?” 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.17/2019dated 08.8.2019 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 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. //True Copy// To The Income Tax Appellate Tribunal 'A' Bench, Chennai. TCA.No.480 of 2014 ks[co]srg 12/10/2020