The Commissioner Of Income Tax Chennai v. M/S.chemise Indus P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 12.03.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.44 of 2016 The Commissioner of Income TaxChennai. ...Appellant/AppellantVs. M/s.Chemise Indus P Ltd65, Sivasakthi Vinayagar NagarThiruverkadu, Chennai-77....Respondent/Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal 'A' Bench, Chennai dated 27.06.2014 in ITA.631/Mds/2014for the asessement year 2004-05 aginst the order of thecommissioner of Income tax Appeals - 1, chennai-34 dated21/11/2013 in ITA No.838/10-11,224/11-12 for the assessment year2004-05 against the order of the Assistant Commissioner ofIncome Tax company circle-1(3) Chennai - 34 dated 1/12/2011 inGIR/PAN.AABCC 1996P for the assessment year 2004-05. For Appellant : Mr.T.Ravi Kumar Senior Standing Counsel For Respondent : Mr.R.Venkatnarayanan for M/s.Subbaraya Aiyer Padmanabhan (Judgment of the Court was delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'A' Bench, Chennai, by raising thefollowing substantial questions of law: https://hcservices.ecourts.gov.in/hcservices/ "1.Whether on the facts and in the circumstances ofthe case, the Tribunal was right in deleting theaddition made u/s.2(22)9e) of the Income Tax Act? 2. Whether on the facts and in the circumstances ofthe case, the Appellate Tribunal was right inholding that the deemed dividend u/s.2(22)(e) arisesin the hands of Smt.Radha Daga and not in the handsof the assessee M/s.Chemise Indus Private Limited? 3. Whether on the facts and in circumstances of thecase, the Tribunal was right in holding that theaddition should be made only in the hands of theregistered and beneficial shareholder and not in thehands of the concerns in which such shareholder ishaving substantial interest?” 2. When the matter was taken up for hearing, the learnedStanding 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). https://hcservices.ecourts.gov.in/hcservices/