The Commissioner Of Income Tax, Chennai v. M/S.aishwarya & Co. P. Ltd., Chennai-1

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 21.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.449 of 2016 The Commissioner of Income Tax, Chennai...AppellantVsM/s.Aishwarya & Co. P. Ltd.,Chennai-1....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 29.5.2015 made in ITA.No.860/Mds/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2008-09 preferred against the Order of theCommissioner of Income Tax (Appeals),Central)-I, Chennai -34,dated 26.12.2013 made in ITA No.208/2013-14 against the Orderpassed by the Assistant Commissioner of Income Tax, companyCircle-1(3), Chennai -34, dated 24.12.2010 for the AssessmentYear 2008-2009 for GIR/PIN AAACA 3161H. For Appellant: Mr.T.Ravikumar, SSC &Mrs.R.Hemalatha, SSCFor Respondent:Ms.J.Sree Vidhya Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Ms.J.Sree Vidhya, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated29.5.2015 made in ITA.No. 860/Mds/2014 on the file of the IncomeTax Appellate Tribunal, Chennai 'C' Bench for the assessmentyear 2008-09.3. The appeal was admitted on 18.7.2016 on the followingsubstantial questions of law :“i. Whether, on the facts andcircumstances of the case, the Tribunal was https://hcservices.ecourts.gov.in/hcservices/ right in deleting the disallowance ofRs.1,08,22,078/- being the loss on accountof future and option set off againstbusiness profit ? ii. Is not the finding of the Tribunalbad especially when stock derivative tradingloss incurred by a company is a speculativeloss, which should be set only againstspeculative gains ? And iii. Whether, on the facts andcircumstances of the case, the finding ofthe Tribunal is proper especially in view ofthe Explanation to Section 73 andExplanation 2 to Section 28 whereby the lossis a speculative loss since brokerage incomeon shares and securities do not find a placein the list of exception provided in theExplanation to Section 73?” 4. The learned Senior Standing Counselfor the appellant submits that the aboveappeal is not pursued by the Revenue onaccount of the low tax effect in terms ofCircular No.17/2019 dated 08.8.2019 issuedby the Central Board of Direct Taxes. By thesaid Circular, the monetary limit for filingor pursuing an appeal before the High Courthas been increased to Rs.1 Crore. It isfurther submitted that the tax effect inthis case is less than 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. RS To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench., Chennai. https://hcservices.ecourts.gov.in/hcservices/ 2. The Commissioner of Income Tax (Appeals),Central)-I, Chennai -34, 3. The Deputy Commissioner of Income Tax, company Circle-1(3), Chennai -34, 4.The Assistant Commissioner of Income Tax, company Circle-1(3), Chennai -34, +1cc to Mr.T.Ravikumar, Advocate, SR.No.71104 +1cc to M/s.J.Sree Vidya, Advocate, SR.No.71731 TCA.No.449 of 2016 Kak(15/10/2019)