The Commissioner Of Income Tax, Chennai v. M/S.chemise Indus P. Ltd.chennai-77

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.1.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR TAX CASE APPEAL NO.43 OF 2016 The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Chemise Indus P. Ltd.Chennai-77...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 27.6.2014 in ITA No.630/Mds/2014 on thefile of the Income Tax Appellate Tribunal Madras 'A' Bench forthe assessment year 2003-04. For Appellant : Mr.T.Ravikumar, SSC Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 25.1.2016 onthe following substantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in deleting the addition made underSection 2(22)(e) of the Income Tax Act? ii. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the deemed dividendunder Section 2(22)(e) arises in the handsof Smt.Radha Daga and not in the hands ofthe assessee M/s.Chemise Indus PrivateLimited ?” https://hcservices.ecourts.gov.in/hcservices/ 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. Sd/- Assistant Registrar//True Copy// Sub Assistant RegistrarRsTo1.The Income Tax Appellate Tribunal, Madras 'A' Bench.2.The Commissioner of Income Tax, Chennai.3.The Section Officer,VR Section, High Court, Madras-104 (2 Copies)+1cc to M/S.R.Hemalatha, Senior Standing Counsel, S.R.No.286TCA.No.43 of 2016 SPD(CO)CS/04/03/2019