The Commissioner Of Income Tax, Chennai v. M/S.sivagami Holdings Pvt. Ltd.,Chennai-2

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.01.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR TAX CASE APPEAL NOS.592 TO 594 OF 2014 The Commissioner of Income Tax, Chennai Vs ...Appellant M/s.Sivagami Holdings Pvt. Ltd.,Chennai-2 ...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 15.1.2014 respectively in ITANos.1486 to 1488/Mds/ 2013 on the file of the Income TaxAppellate Tribunal Madras 'C' Bench for the assessment years2006-07, 2008-09 and 2009-10 respectively against the order ofthe Commissioner of Income Tax (Appeals)V, Chennai made inI.T.A.Nos.447/11-12,457/2010-11 and 444/2011-12 order dated28/03/2013 for the Assessment Year 2006-07, 2008-09 and 2009-10respectively and against the order of the Assistant Commissionerof Income Tax Company Circle - VI(3) made inPAN/GIR.Nos.AAEC3279-A/S187,order dated 30/12/2010, 07/12/2011and 26/12/2011. For Appellant : Mr.T.R.Senthilkumar, SSC & Ms.K.G.Usharani, JSC For Respondent: Mr.S.Sridhar COMMON JUDGMENT (Judgment was delivered by T.S.SIVAGNANAM,J) Heard the learned Senior Standing Counsel for the appellant. https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals by the Revenue challenge the common orderpassed by the Income Tax Appellate Tribunal, which decided theissue in favour of the assessee. The appeals were admitted on27.10.2014 on the following substantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the income of theassessee from sources outside Malaysiacannot be taxed in India in view of the DTAAbetween India and Malaysia even though thesame forms part of the assessee's globalincome ? ii. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the Malaysia branch isa permanent establishment of the assessee inMalaysia ? iii. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the Malaysia branch isnot taxable in India in view of the DTAAbetween India and Malaysia ?iv. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that interest under Section234B of the Act cannot be charged on theassessee ? And v. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that interest under Section234D of the Act cannot be charged on theassessee?” 3. The Revenue seeks to withdraw these appeals on accountof low tax effect in terms of Circular No.3 of 2018 dated11.7.2018 issued by the Central Board of Direct Taxes. 4. In the light of the above, these appeals are dismissedas withdrawn and the substantial questions of law framed areleft open. In the event, in any of the cases, the tax effect isabove the threshold limit fixed in the said circular underexceptional clauses mentioned in the circular, liberty isgranted to the Revenue to make a mention to this Court to https://hcservices.ecourts.gov.in/hcservices/ restore the appeals to be heard and decided on merits. No costs.RS Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Madras 'C' Bench. 2.The Commissioner of Income Tax (Appeals) - V, No.121, Mahatma Gandhi Road, Chennai - 600 34. 3.The Assistant Commissioner of Income Tax Company Circle VI(3), Room No.106, 7[th] floor, New Block, No.121, Mahatma Gandhi Road, Chennai -34.+1cc to M/s.T.R.Senthil Kumar, Advocate, SR.NO.214+1cc to M/s.S.Sridhar, Advocate, SR.NO.358.TCA.Nos.592 to 594 of 2014cp(CO)kak(26/02/2019) https://hcservices.ecourts.gov.in/hcservices/