The Commissioner Of Income-Tax,Tamil Nadu-I, Madras v. M/S.parma And Vijay Investment & Finance Company Pvt., Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case (Appeal) Nos.764 and 765 of 2008 The Commissioner of Income-tax,Tamil Nadu-I, Madras. ... Appellant in both the Appeals -vs- M/s.Parma And Vijay Investment & Finance Company Pvt., Ltd.,No.3, Vijayaraghava Road,T.Nagar, Chennai-600 017.... Respondent in both the Appeals Tax Case (Appeals) filed under Section 260A of theIncome Tax Act, 1961 against the common order of the IncomeTax Appellate Tribunal 'B' Bench, Chennai, dated 07.09.2007in I.T.A.Nos.398 and 399/Mds/2007 for the assessment years1998-99 and 1999-2000 respectively against the order ofcommisioner of income tax (Appeals)-V,121,Mahathma GandhiRoad, Chennai. 600034. for the ITA.NO.411/2005-2006 &ITA.NO.412 /2005-2006 dt.26/10/2006 for the Assessment year1998-1999 and 1999 -2000 against the order of the IncomeTax Department ,Company circle V(1), Chennai. 34 for thePAN /GIR NO.AAACP3722H/51074-P dt .30.11.2005 for theAssessment year 1998-1999 and 1999-2000. For Appellant:Mr.T.Ravikumar(in both the Appeals)Senior Standing CounselFor Respondent:No Appearance(in both the Appeals) ***** COMMON JUDGMENT(Delivered by T.S.Sivagnanam, J.) These appeals, by the appellant/Revenue, are directedagainst the common order passed by the Income Tax AppellateTribunal 'B' Bench, Chennai, dated 07.09.2007 inI.T.A.Nos.398 and 399/Mds/2007 for the assessment years1998-99 and 1999-2000 respectively. 2.Heard Mr.T.Ravikumar, learned Senior StandingCounsel for the Revenue.3.The above appeals have been admitted, on 08.07.2008,on the following substantial questions of law:-“(i) Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in law in deleting theaddition on account of interest under section14A of the Income Tax Act, 1961 and allowingthe expenditure under section 37 of theIncome Tax Act is valid?(ii) Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in law in deleting theinterest under section 234-D of the IncomeTax Act, is valid?” 4.We have perused the order of Assessment as well asthe Order passed by the Commissioner of Income Tax(Appeals) and we find that the tax effect in these appealsis lesser than the threshold limit mentioned in CircularNo.3 of 2018, dated 11.07.2018, issued by the CentralBoard of Direct Taxes, which fixes the monetary limit asRs.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 of2018, dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannotpursue these appeals in view of the low tax effect. Hence,the appeals are dismissed and the substantial questions oflaw, framed for consideration, are left open. The Revenueis at liberty to seek for restoration of appeals if at alater point of time, it is found that the tax effect isabove the threshold limit or to fall under the exceptionalclauses mentioned in the Circular. No costs. Sd/-/- Assistant Registrar(CS ix) //True Copy// Sub Assistant Registrar abr To The Income Tax Appellate Tribunal Chennai 'B' Bench. 2.The Commisioner of incoem Tax, Tamil Nadu I, madras. 3.The commisioner of income tax (Appeals)-V,121,MahathmaGandhi Road, Chennai. 600034. 4.The Income Tax Department ,Company circle V(1), Chennai.34 5.The Assistant Registrar, Income tax Appellate Tribunal ,III RD FLOOR, Rajaji Bhawan, Besant Nagar Chennai. 90. +1cc to Mr.M.Swaminathan, Advocate SR.No. 76137 +1cc to Mr.T.Ravikumar , Advocate SR.No. 75747 ASK(19/12/2018) T.C.(A) Nos.764 and 765 of 2008