The Commissioner Of Income Tax,Chennai v. M/S.tvs Investments Limited,Jayalakshmi Estate

DATED : 26.08.2019 THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM andTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN The Commissioner of Income tax,Chennai... Appellant -vs- M/s.TVS Investments Limited,Jayalakshmi Estate,29, Haddows Road, Chennai-600 006. .. Respondent Appeal under Section 260A of the Income-tax Act, 1961againsttheorderdated29.01.2013,madein madein I.T.A.No.1609/Mds/2012 on the file of the Income Tax AppellateTribunal 'B' Bench, Chennai for the assessment year 2008-09,against the order of the Commissioner of Income Tax(Appeals)-III, Chennai dated 27.06.2012 and made inITA.No.768/2010-11/A.III and against the order of the AssistantCommissioner of Income Tax Company Circle III(2) dated31.12.2010 for the assessment year 2008-09. For Appellant:Mr.M.Swaminathan, SSCassisted by Ms.V.Pushpa,Standing Counsel For Respondent :Mr.R.VenkatanarayanaFor M/s.Subbaraya Aiyar, Padmanabhan & Ramamani This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated29.01.2013, made in I.T.A.No.1609/Mds/2012 on the file of theIncome Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2008-09. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on 11.08.2014, on thefollowing substantial questions of law:-“(i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in restricting thedisallowance made under Section 14A at 2% of theexempted income? (ii) Whether Section 14A read with Rule 8D ofthe Income Tax Rules apply to assessment year2008-09?” 3.Heard Mr.M.Swaminathan, learned Senior Standing Counselassisted by Ms.V.Pushpa, learned Standing Counsel for theappellant – and Mr.R.Venkatanarayan, learned counsel forM/s.Subbaraya Aiyar, Padmanabhan and Ramamani, for therespondent. 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.17/2019,dated 08.08.2019 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. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal 'B' Bench, Chennai. https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals) – III, 121 Mahatma Gandhi Road, Chennai -34. 3.The Assistant Commissioner of Income Tax, Company Circle III(2), Chennai -600 034. Company Circle III(2), Chennai -600 034. +1 cc to M/s.M.Subbaraya Aiyar, Advocate Sr.No. 73372 +1 cc to M/s.M.Swaminathan, Advocate Sr.No.73017 AKM/12.11.19/3P-6C / T.C.A.No.281 of 2014