The Commissioner Of Income Tax-I,Chennai v. M/S.tamil Nadu Medical Servicescorporation Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 28.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case Appeal No.151 of 2011 The Commissioner of Income Tax-I,Chennai. ...Appellant/Respondent -vs- M/s.Tamil Nadu Medical ServicesCorporation Ltd.,417,Pantheon Road, Egmore,Chennai – 600 008. ...Respondent/Appellant Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 (for brevity 'the Act') against the order of theIncome Tax Appellate Tribunal Chennai 'D' Bench, dated29.10.2010 in ITA No.1716/Mds/2008, for the Assessment year1999-2000 and this Appeal preferred against the order dated25.01.2008 made in I.T.A. No.628/06-07/A-III on the file of theCommissioner of Income Tax (Appeals)-III, No.121, Mahatma GandhiRoad, Chennai 600 034 for the Assessment Year 1999-2000 and thisappeal preferred against the order dated 29.11.2006 made in31131-T/AAACT3400E on the file of the Income Tax Officer(OSD)Company Circle-III (1) Chennai 600 034 for the Assessment Year1999-2000. For Appellant: Mrs.V.Pushpa For Respondent : Mr.M.P.Senthil Kumar JUDGMENT [Judgement of the Court was delivered by T.S.Sivagnanam, J.] This Tax Case Appeal by the Revenue is filed underSection 260A of the Income Tax Act, 1961 against the order ofthe Income Tax Appellate Tribunal Chennai 'D' Bench, dated https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mrs.V.Pushpa, learned Counsel for the appellant andMr.M.P.Senthil Kumar, learned Counsel for the Respondent. 3.This Appeal has been admitted on 25.04.2011, on thefollowing Substantial Question of Law: "Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theaddition of Rs.29,54,145/- sustained by theCommissioner of Income Tax (Appeals) towardsthe expenditure on provision of certain capitalassets to Government Hospitals, which could notbe allowed as revenue expenditure under Section37?” 4.We have perused the order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Questions of Law, framed forconsideration, are left open. No costs. The Revenue is atliberty to seek for restoration of appeal, if at a later pointof time, it is found that the tax effect is above the thresholdlimit. Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal Madras 'D' Bench. 2. The Commissioner of Income Tax (Appeals)-III,No.121, Mahatma Gandhi Road, Chennai 600 034.No.121, Mahatma Gandhi Road, Chennai 600 034. 3. The Income Tax Officer(OSD), Company CircleIII(1)Chennai 600 034.Chennai 600 034. +1 cc to Mr.M.Swaminathan, Advocate Sr.No.81320 +1 cc to Mr.N.Muthukumar, Advocate Sr.No.81597 KJ(CO)CSL/06.02.2019 T.C.A.No.151 of 2011