Tca/746/2017 Of The Commissioner Of Income Tax v. M/S Carburettors Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.746 and 747 of 2017 The Commissioner of Income tax,Chennai. .. Appellant in both Appeals-vs- M/s.Carburettors Ltd.,Raheja Towers, 7[th] Floor, Sigma Wing,No.177, Anna Salai, Chennai-600 002.PAN: AAACC 1299E.. Respondent in both Appeals Appeals under Section 260A of the Income-tax Act, 1961,against the common order dated 28.09.2016, made in I.T.A.Nos.640& 641/Mds/2016 on the file of the Income Tax Appellate Tribunal'A' Bench, Chennai for the assessment years 2010-11 and 2011-12respectively.Appeal filed against the order dated 08/12/2015 made in ITANos.140/13-14/A-1 and ITA Nos.523/13-14/A-1(PAN NO. )respectively on the file of commissioner of Income Tax(Appeals)-1, 121, Mahatma Gandhi Road, Chennai- 600 034, andagainst the order dated 12/03/2013 and 27/08/2013 made inPAN/GIR No.AAACC1299E on the file of the Assistant Commissionerof Income Tax, Company Circle I(3), Chennai for the AssessnentYear 2010-11 and 2011-2012 respectively. For Respondent : Mr.A.S.Sriraman (In both Appeals) For Mr.S.Sridhar COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the Revenue under Section 260A of theIncome-tax Act, 1961 are directed against the common order dated28.09.2016, made in I.T.A.Nos.640 & 641/Mds/2016 on the file ofthe Income Tax Appellate Tribunal 'A' Bench, Chennai for theassessment years 2010-11 and 2011-12 respectively. 2.The appeals have been admitted on 02.01.2018, on thefollowing substantial question of law:-“Whether interest incurred in respect ofinvestments made in a subsidiary company as alsothe value of such investment has to be excludedwhile computing disallowance under Section 14A ofthe Income Tax Act, 1961 read with Rule 8D(2)(iii)of the Income Tax Rules, 1962?” 3.Heard Mr.T.Ravikumar and Ms.R.Hemalatha, learned SeniorStanding Counsel for the appellant – and Mr.A.S.Sriraman,learned counsel for Mr.S.Sridhar, learned Counsel for therespondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 these cases isless than the threshold limit. 5.In the light of the said submissions, the above tax caseappeals are 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 appeals to be heard and decided onmerits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar abr To 1.The Commissioner of Income Tax(Appeals)-1,121, Mahatma Gandhi Road, Chennai-34. 2.The Assistant Commissioner of Income – Tax,Company Circle I(3), Chennai. 3.The Income Tax Appellate Tribunal 'A' Bench, Chennai. +1cc to M/s.T.Ravikumar, Advocate, sr no.74358+1cc to M/s.S.Sridhar, Advocate, sr no.75284T.C.A.Nos.746 and 747 of 2017BP(CO)RMP(09/12/2020)