The Commissioner Of Income Tax Trichy v. M/S.the Lakshmi Vilas Bank Ltd.,Salem Road, Kathaprai, Karur

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21.12.2018 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.511 of 2009 The Commissioner of Income Tax Trichy. .. Appellant Vs. M/s.The Lakshmi Vilas Bank Ltd.,Salem Road, Kathaprai, Karur. .. Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 19.1.2007 made inITA No.691/Mds/2005. The Income Tax Appellate Tribunal 'Chennai Bench D',Chennai, I.T.A.No.718 to 721 (Mds)2005, Assessment Year 1993-94,1994-95,1997-98 & 1998-99 against the Assistant Commissionerof Income Tax Company Circle-I, Tiruchirapalli, I.T.A.No.689 to691 & 751 (Mds) 2005 Assessment Year 1993-94,1994-95,1998-99 &1997-98 against the Commissioner of Income Tax (Appeals)I.T.A.No.33/2001-02dated30.12.2004G.I.NO/P.A.NO.101CIT19/AAACT4291P, Assessment Year 1998-99 against theCommissioner of Income Tax (Appeals) I.T.A.No.41/2000-2001 dated30.12.2004 G.I.P.A.No.101CIT19/AAACT4291P, Assessment Year 1997-1998 against the Additional Commissioner of Income Tax, SpecialRange, Tiruchirappalli G.I.No.109-T/JC-SR/TRY Assessment Year1998-1999 against the Joint Commissioner of Income Tax, SpecialRange, Tiruchirappalli, G.I.No.109-T/SR/TRY, Assessment Year1997-1998. For Appellant : Mr.M.Swaminathan Senior Standing Counsel For respondent : Mr.R.Vijayaraghavan J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'D' Bench, Chennai, dated 19.1.2007made in ITA No.691/Mds/2005, by raising the followingsubstantial question of law: "(i) Whether, on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in law in holding that 2% of the totaldividend received by the assessee may be relatableto the expenditure for the purpose of earning thedividend income under Section 80M of the Income TaxAct, 1961?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar ssk. To 1. The Income Tax Appellate Tribunal, Chennai Bench 'D', Chennai.Chennai Bench 'D', Chennai. 2. The Assistant Commissioner of Income Tax, Company Circle-I, Tiruchi.Company Circle-I, Tiruchi. 3. The Commissioner of Income Tax (Appeals), No.41 Williams Road, Contonment, Tiruchirappalli. No.41 Williams Road, Contonment, Tiruchirappalli. 4. The Additional Commissioner of Income Tax, Special Range, Tiruchirappalli.Special Range, Tiruchirappalli. 5. The Joint Commissioner of Income Tax,Special Range, Tiruchirappalli.Special Range, Tiruchirappalli. 6. The commissioner of Income Tax, Tiruchirappalli. +1 cc to M/s.S.Premalatha, Advocate Sr.No.89280 +1 cc to Mr.K.Subbaraya Aiyar, Advocate Sr.No.89600 TCA No.511 of 2009VSN-II(CO)CSL/28.02.2019