The Commissioner Of Income Tax, Chennai v. M/S.rane Holdings Limited, Chennai-86

In the High Court of Judicature at MadrasDated : 30.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.750 of 2016 The Commissioner of Income Tax, Chennai..Appellant/RespondentVs.M/s.Rane Holdings Limited, Chennai-86...Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 06.1.2016 made in ITA.No.115/Mds/2015 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2010-11 and against the order of theCommissioner of Income Tax (Appeals -V), dated 21/10/2014 andmade in GIR.No./PAN.No. , and against the order of theAssistant Commissioner of Income Tax Company Circle V(3),Chennai, made in PAN./G.I.No. , for the Assessment year2009-10. We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Mr.R. Venkatanarayanan, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated06.1.2016 made in ITA.No. 115/Mds/2015 on the file of the IncomeTax Appellate Tribunal, Chennai 'D' Bench for the assessmentyear 2010-11. https://hcservices.ecourts.gov.in/hcservices/ remitting the issue of disallowance underSection 14A back to the Assessing Officerfor fresh consideration ignoring theevidence already available on record ? andii. Is not the finding of the Tribunalbad by remitting the issue back to theAssessing Officer especially when theAssessing Officer and the Commissioner ofIncome Tax (Appeals) had given categoricalfinding on issue of disallowance underSection 14A of the Income Tax Act?” 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. //True Copy// To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench.2.The Commissioner of Income Tax (Appeals- V),2[nd] Floor, Main Buildings, 121 Mahatma Gandhi Road,Nungambakkam, Chennai -34.3.The Assistant Commissioner of Income Tax,Company Circle -V(3), Chennai. +1 cc to M/s.T.Ravikumar,Advocate Sr.No. 75814+1 cc to M/s.Subbaraya Aiyar, Advocate Sr.No.75929 https://hcservices.ecourts.gov.in/hcservices/