The Commissioner Of Income Tax, Chennai v. M/S.t.t.krishnamachari & Co

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 28.08.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.873 of 2018 The Commissioner of Income Tax,Chennai....Appellant/ AppellantVs M/s.T.T.Krishnamachari & Co.,No.6, Cathedral road, Gopalapuram,Chennai - 600 086.PAN: ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 20.06.2018 made in ITA.No.2456/Chny/2017 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2014-15 against the Order dated 10.07.2017made in ITA No.150/2016-17/A-2014-15/CIT(A)-4 on the file of theCommissioner of Income Tax (Appeals)-4, and against the Orderdated 20.12.2016 on the file of the Assistant Commissioner ofIncome Tax, Non Corporate Circle -3, Chennai -34, in PANNo.AAAFT0395D, for the Assessment Year 2014-15 For Respondent: Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan JUDGMENT We have heard Mr.T.Ravikumar, learned Senior StandingCounsel, and Ms.R.Hemalatha, learned Senior Standing Counselappearing for the appellant/revenue and Mr.R.Venkatanarayanan,learned counsel for M/s.Subbaraya Aiyar Padmanabhan, 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 dated20.06.2018 made in ITA.No.2456/Chny/2017 on the file of the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2014-15. 3.The appeal was admitted on 03.12.2018 on the followingsubstantial questions of law :“1.Whether the Tribunal was right in upholdingthe order of the Commissioner of Income Tax(Appeals) while making disallowance under Section14A read with Rule 8D in respect of investment madein the subsidiary company out of non interestbearing funds, which is not to be taken intoaccount especially when the facts remain that nosuch exceptions have been provided under theStatute for excluding the same? and 2.Whether the Tribunal ought to have appliedthe judgment of the Apex Court in the case ofMaxopp Limited [reported in 402 ITR Page 640],which supports the stand of the Department?" 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. CSE To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench, Chennai. 2. The Commissioner of Income Tax (Appeals)-4, Chennai - 34. 3. The Assistant Commissioner of Income Tax, Non Corporate Circle -3, Chennai - 34. +1cc to Mr.T.Ravi Kumar, Advocate, SR.No.73682 +1cc to Mr.Subbarya Aiyar Padmanabhan, Advocate, SR.No.74739 TCA.No.873 of 2018 Kak(04/11/2019)