The Commissioner Of Income Tax, Chennai v. M/S.chennai Petroleum Corporation Limited, Refinery House, Manali, Chennai - 600 068

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:02.06.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.851 of 2013 The Commissioner of Income Tax,Chennai.... Appellant/AppellantVs. M/s.Chennai Petroleum Corporation Limited,Refinery House, Manali,Chennai - 600 068. ... Respondent/Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 25.07.2012 made inITA No.439/Mds/2009. Against the order passed by the Commissioner of Tax(Appeals) Large Tax Payer Unit, Chennai-101 made inITA.No.562/07-08/LTU(A), dt.21.11.2008 and against the orderpassed by the Assistant Commissioner of Income Tax, CompanyCircle 1(3) Chennai, dt.4.12.07 made in GI No/PAN. /CX2-007. For Appellant : Mr.T.Ravikumar Senior Standing Counsel (Taxes) For Respondent : M/s.R.Venkata Narayanan for Subbarayan Iyer Padmanabhan This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, Madras 'D' Bench, Chennai,dated 25.07.2012, in ITA No.439/Mds/2009, for the AssessmentYear 2005-06, by raising the following substantial questionsof law: "(i)Whether on the facts and in thecircumstances of the case, the Income https://hcservices.ecourts.gov.in/hcservices/ Tax Appellate Tribunal was right inholding that the expenditure incurredtowards social and community welfareexpenses amounting to Rs.109.88 lakhsare allowable expenditure? (ii) Whether on the facts and inthe circumstances of the case, theIncome Tax Appellate Tribunal was rightin holding that the social welfareexpenditure is allowable even though thesame is not connected with the businessof the assessee?" 2. When the matter is taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeal shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appealfiled by the Revenue is dismissed, as withdrawn, keeping openthe substantial questions of law for determination inappropriate cases. No costs. Sd/- Assistant Registrar(co) To //True Copy// Sub Assistant Registrar 1.The Commissioner of Income Tax, Chennai. Chennai. 2.The Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai. Madras 'D' Bench, Chennai. 3.The Commissioner of Tax (Appeals) Large Tax Payer Unit, Chennai-101. Large Tax Payer Unit, Chennai-101. 4.The Assistant Commissioner of Income tax, Company Circle 1(3) Chennai. Company Circle 1(3) Chennai. Bis(co)krd 17/7T.C.A.No.851 of 2013