Tca/60/2016 Of Commissioner Of Income Tax v. M/S.sundaram Clayton Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 13.07.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY TCA Nos.60 of 2016 Commissioner of Income Tax,Chennai ... Appellant/Respondent.vs.M/s.Sundaram Clayton Ltd.No.24 (Old No.8) Haddows Road,Chennai 600 006 ... Respondent/Appellant Prayer: TCA No.60/2016 filed against the order of theIncome Tax Appellate Tribunal B Bench, Chennai dated 8.11.2004inITA No.696/MDS/1996 against the order the Commissioner of IncomeTax (Appeals)-VII, Madras dated 16.10.1997 made in IT AppealNo.45/96-97 and against the order of the Deputy Commissioner ofIncome Tax Special Range-II, Madras dated 14.03.1995 made inPAN/GIR No.10-S for the assessment year 1993-94. For appellant: Mr.J.Narayanasamy, Senior Standing counselFor respondent : Mr.R.Venkatnarayanan, for M/s.Subaraya Aiyar & Padmanabhan ORDER(Made by DR.VINEET KOTHARI, J.) The Court was held by Video Conference, as per theResolution of the Full Court dated 3 July 2020, by Judges attheir respective residence and the counsel, staff of the Courtappearing from their respective residences. 2. This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal B Bench, Chennai dated 8.11.2004in ITA No.696/MDS/1996, by raising the following substantialquestions of law: "Whether on the facts and circumstances https://hcservices.ecourts.gov.in/hcservices/ of the case, the Tribunal was right inholding that the transaction is not hit bythe provision of Section 50, even though theassessee had clearly demarcated thedepreciable assets sold during the year, aspart of the sale of the undertaking and thetransfer price was also fixed after takinginto account the value of the depreciableassets and the immovable assets of theassessee company ?"” 3. 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). 4. 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effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed as withdrawn, keeping open thesubstantial questions of law for determination in appropriatecases. No costs. Sd/- Assistant Registrar //True copy// Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal “B” Bench, Chennai Chennai 2. The Commissioner of Income Tax (Appeals)-VII, Madras. Madras. 3. The Deputy Commissioner of Income Tax, Special Range-II, Madras. Special Range-II, Madras. rr ii (08/10/2020)