The Commissioner Of Income Tax, Corporate Circle 3(1), Chennai v. M/S.trimex Sands Pvt. Ltd

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, Corporate Circle 3(1), Chennai ...Appellant Vs M/s.Trimex Sands Pvt. Ltd., Chennai-18....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 22.1.2019 made in ITA.No.2529/Chny/2018 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2014-15, against the order of theCommissioner of Income Tax (Appeals) -II, Chennai-34 dated28.06.2018 and made in ITA.NO.266/16-17 and against the order ofthe Assistant Commissioner of Income Tax, Chennai-34 dated26.12.2016 for the assessment year 2014-2015. For Appellant:Mr.M.Swaminathan, SSC assisted byMs.V.Pushpa, JSC & Ms.S.Premalatha, JSC Judgment was delivered by T.S.Sivagnanam,J We have elaborately heard Mr.M.Swaminathan, learned SeniorStanding Counsel, assisted by both Ms.V.Pushpa, learned JuniorStanding Counsel and Ms.S.Premalatha, learned Junior StandingCounsel appearing for the appellant - Revenue. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated22.1.2019 made in ITA.No. 2529/Chny/2018 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2014-15. 3. The Revenue has filed this appeal by raising the followingsubstantial question of law : https://hcservices.ecourts.gov.in/hcservices/ “Whether, on the facts and circumstancesof the case and in law, the Tribunal wasright in holding that the disallowance underSection 14A read with Rule 8D should berestricted to the extent of exempted incomeespecially when neither Section 14A nor Rule8D provides for any such restriction ?” 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. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar TO: 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax,(Appeals)-II,Room NO.222, Aayakar Bhavan,Main Building, III floor, 121 Mahatma Gandhi Road,Nungambakkam Chennai-600 034. 3.The Assistant commissioner of Income Tax,Corporate Circle 3(1),Chennai-600 034. +1cc to Mr.M.Swaminathan, Advocate sr.70024 mp(co)nr 26/09/2019 TCA.No.595 of 2019 https://hcservices.ecourts.gov.in/hcservices/