Commissioner Of Income-Tax vs Shri M G Muthu
2021 Latest Caselaw 11248 Mad

                                                                           T.C.A.No.478 of 2013

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 30.04.2021

                                                      CORAM

                                    THE HON'BLE MR. JUSTICE M.DURAISWAMY
                                                     AND
                                    THE HON'BLE MRS.JUSTICE R. HEMALATHA

                                                T.C.A.No.478 of 2013

                     Commissioner of Income-tax,
                     Chennai.                                              ... Appellant
                                                         Vs.


                     Shri M G Muthu
                     No.1, 9th Street,
                     Dr. Radhakrishna Salai,
                     Mylapore, Chennai – 600 004.                          ... Respondent

                               Appeal preferred under Section 260A of the Income Tax Act,
                     1961, against the order of the Income Tax Appellate Tribunal, Madras,
                     “A” Bench, dated 24.08.2012 in I.TA.No.1281/Mds/2011, Assessment
                     Year 2002-03.


                               For Appellant    : Mr.S.Rajesh
                                                  Standing Counsel

                               For Respondent   : Mr.B.Sivaraman




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                                                                              T.C.A.No.478 of 2013

                                                     JUDGMENT

(Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.S.Rajesh, learned Standing Counsel for the

appellant/Revenue and Mr.B.Sivaraman, learned counsel for the

respondent/assessee.

2.The appeal, filed by the Revenue under Section 260A of the

Income Tax Act, 1961 (for short, the Act) is directed against the order

dated 24.08.2012 made in I.TA.No.1281/Mds/2011 on the file of the

Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the

Tribunal) for the Assessment Year 2002-03.

3.The appeal was admitted on 28.10.2013 on the following

substantial question of law:

“Whether on facts and circumstances of the case, the Tribunal was right in holding that the payment made by M/s.MGM Diamond Beach Resorts P Ltd., to M/s.Anand Transport is not taxable as deemed dividend taxable in the hand of the assessee?”

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4.The learned Standing Counsel for the appellant submits that the

above appeal is not pursued by the Revenue on account of the Low Tax

Effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the

Central Board of Direct Taxes. By the said Circular, the monetary limit

for filing or pursuing an appeal before the High Court has been increased

to Rs.1 crore. It is further submitted that the tax effect in this case is less

than the threshold limit.

5.In the light of the said submissions, the above Tax Case Appeal

is dismissed as withdrawn on account of the Low Tax Effect. The

substantial question of law framed is left open. In the event the tax effect

in this case is above the threshold limit fixed in the said Circular,

liberty is granted to the Revenue to make a mention to this Court to

restore the appeal to be heard and decided on merits. No costs.

                                                                      [M.D., J.]      [R.H., J.]
                                                                             30.04.2021
                     mkn



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https://www.mhc.tn.gov.in/judis/ T.C.A.No.478 of 2013

Index : Yes/No Internet : Yes

To

1.The Income Tax Appellate Tribunal, Chennai, “A” Bench

2.The Commissioner of Income-tax, Chennai.

Page 4/5 https://www.mhc.tn.gov.in/judis/ T.C.A.No.478 of 2013

M.DURAISWAMY, J.

and R. HEMALATHA, J.

mkn

T.C.A.No.478 of 2013

30.04.2021

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