The Commissioner Of Income Tax, Chennai v. M/S.alagumalai Impex Pvt Ltd

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.407 of 2018 The Commissioner of Income Tax, Chennai. ...AppellantVs M/s.Alagumalai Impex Pvt LtdNo.95, New Avadi Road,Kilpauk, Chennai 600 010.PAN : ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order of Income Tax Appellate Tribunal, Madras ''B'' BenchChennai, dated 11.07.2017 passed in I.T.A.No.214/Mds/2014against the order of the Commissioner of income Tax (Appeals)(Central) I Chennai-34 dated 28/11/2013 relevant to theAssessment year 2008-09 against the Assessment Order dated24/12/2010 passed by the Deputy Commissioner of Income Tax,Company Circle -I(I) Chennai-34 for the Assessment Year 2008-09. For Appellant: Mr.T.RavikumarRespondent :Mr.R.Kumar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar, learned Senior StandingCounsel, assisted by Ms.R.Hemalatha, learned Standing Counselappearing for the appellant – Revenue. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated11.07.2017 made in I.T.A.No.214/Mds/2014 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2008-09. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was raised on the following substantialquestions of law :“1.Whether, the Tribunal was correct inholding that section 14A disallowance are tobe made only when the assessee earns exemptincome which is contrary to the wording inthe Section as well as Rule 8D as they donot provide for any such exemption? 2.Whether disallowance u/s.14A could be madeeven in a situation where no exempt incomeis earned but exempt income bearinginvestments are there? 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 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. 1.The Income Tax Appellate Tribunal, Madras ''B'' Bench, Chennai. 2. The Commissioner of Income Tax (Appeals) (Central)-I, Chenani-34 3. The Deputy Commissioner of Income Tax, Company Circle -I(I), Chennai-34. https://hcservices.ecourts.gov.in/hcservices/