The Commissioner Of Income Tax, Chennai v. M/S.dewa Properties Ltd

In the High Court of Judicature at Madras Dated : 27.08.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax,Chennai. ...AppellantVs M/s.Dewa Properties Ltd.,No.770A, II Floor Dewa Tower-I,Anna Salai, Chennai - 600 002. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 22.04.2014 made in ITA.No.491/MDS/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2006-07 as against the order dated31.10.2013 of the Commissioner of Income Tax(Appeals)II, CentralChennai for the Assessment year 2006-2007 in PAN No. ,and against the order dated 07.12.2011 of the AssistantCommissioner of Income Tax, Chennai and as against the orderdated 27.09.2010 of the Commissioner of Income Tax, Chennai forthe Assessment year 2006-2007 in PAN.No. . We have heard Mr.T.Ravikumar, learned Senior StandingCounsel, and Ms.R.Hemalatha, learned Senior Standing Counselappearing for the appellant/revenue and Mr.R.Sivaraman, learnedcounsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated22.04.2014 made in ITA.No.491/MDS/2013 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench for the assessmentyear 2006-07. 3.The appeal was admitted on 22.07.2015 on the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ “i) Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in restricting thedisallowance made under Section 14A read withRule 8D when Section 14A(2) provides that thedisallowance may be determined in accordancewith such rule as may be prescribed? ii) Is not the finding of the Tribunal wrongespecially when the Assessing Officer could makedisallowance under Section 14A in accordancewith the method prescribed under Rule 8D?" 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 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. To https://hcservices.ecourts.gov.in/hcservices/