The Commissioner Of Income Tax, Chennai v. Shriram Ownership Trust, Chennai-17

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax, Chennai...Appellant/RespondentVs Shriram Ownership Trust, Chennai-17....Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 05.7.2017 made in ITA.No.406/Mds/2017 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2013-14.As per order of the Income Tax Appellate Tribunal 'C'Bench, Chennai, Assessment year:2013-2014 & 2014-2015, PANAAGTS2243H, Date of pronouncement dated 5/7/2017. As per order of the Commissioner of Income Tax (Appeals)-2,Nungambakkam, Chennai 600 034, PAN No , Assessmentyear, 2013-14 & 2014-2015 dated 23/11/2016 & 28/11/2016. As per order of the Deputy Commissioner of Income Tax, Non-Corporate circle-2,Chennai, PAN/G.I.R.No. Assessmentyear, 2014-15,dated order 27/9/2016. As per order of the Deputy Commissioner of Income Tax nonCorporate circle-2, Chennai, PAN No GIR No ,Assessment year, 2013-14, date of order 18/12/2015. We have heard Mrs.R.Hemalatha, learned Senior StandingCounsel appearing for the appellant – Revenue andMr.R.Sivaraman, learned counsel for the respondent. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated05.7.2017 made in ITA.No. 406/Mds/2017 on the file of the Income https://hcservices.ecourts.gov.in/hcservices/ Tax Appellate Tribunal, Chennai 'C' Bench for the assessmentyear 2013-14. 3. The Revenue filed this appeal by raising the followingsubstantial question of law :“Whether the Tribunal was correct inholding that the investment, which yieldedno exempt income was to be excluded whilecomputing deduction under Section 14A whenthe provisions of the Income Tax Act and theRules made thereunder do not provide for anysuch exclusion and further such investmentshall always remain in tax free territory ?” 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 question of law raised is 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. RS 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench.2.The Commissioner of Income Tax (Appeals)-2,Chennai 600 034.3.The Deputy Commissioner of Income Tax non-Corporate Circle-2, Chennai. https://hcservices.ecourts.gov.in/hcservices/