The Principal Commissioner Of vs M/S.Meridian Apparels Ltd
2021 Latest Caselaw 2131 Mad

                                                                                 TCA.No.90 of 2021


                                       IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED : 01.2.2021

                                                           CORAM

                                       THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM

                                                            and

                                         THE HONOURABLE MS.JUSTICE R.N.MANJULA

                                                Tax Case Appeal No.90 of 2021


                     The Principal Commissioner of
                     Income Tax, Corporate Circle 4(1),
                     Chennai-34                                                  ...Appellant
                                                       Vs
                     M/s.Meridian Apparels Ltd.,
                     Chennai-18.                                                 ...Respondent

APPEAL under Section 260A of the Income Tax Act, 1961 against

the order dated 28.4.2017 passed by the Income Tax Appellate

Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.2830/Mds/2016

for the assessment year 2011-12.

For Appellant: Mr.Karthik Ranganathan, SC For Respondent : Mr.A.S.Sriraman

Judgment was delivered by T.S.SIVAGNANAM,J

This appeal has been filed by the Revenue under Section 260A of

the Income Tax Act, 1961 ('the Act' for brevity) challenging the order

https://www.mhc.tn.gov.in/judis/ TCA.No.90 of 2021

dated 28.4.2017 made in I.T.A.No.2830/Mds/2016 on the file of the

Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for

brevity) for the assessment year 2011-12.

2. The Revenue has filed this appeal by raising the following

substantial question of law:

“Whether, on the facts and circumstances of the case and in law, the Tribunal is correct in deleting the addition made under Section 2(24)(x) read with Section 36(1)(va) of the Income Tax Act, 1961?”

3. We have heard Mr.Karthik Ranganathan, learned Standing

Counsel appearing for the appellant/Revenue and Mr.A.S.Sriraman,

learned counsel accepting notice for the respondent/assessee.

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 08.8.2019 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

https://www.mhc.tn.gov.in/judis/ TCA.No.90 of 2021

this case is less than the threshold limit.

5. In the light of the said submissions, the above tax case appeal

is dismissed on account of the low tax effect. The substantial question

of law raised is left open. In the event the tax effect is above the

threshold limit fixed in the said circular, liberty is granted to the

Revenue to file a petition before this Court to restore the appeal to be

heard and decided on merits. No costs.

01.2.2021 uTo The Income Tax Appellate Tribunal, 'A' Bench, Chennai.

RS

https://www.mhc.tn.gov.in/judis/ TCA.No.90 of 2021

T.S.SIVAGNANAM,J AND R.N.MANJULA,J

RS

TCA.No.90 of 2021

01.2.2021

https://www.mhc.tn.gov.in/judis/