Madras High Court
Commissioner Of Income Tax vs M/S. Bnt Connections Impex Ltd on 2 February, 2021
T.C.A.No.144 of 2013
96IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 02.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.144 of 2013
Commissioner of Income Tax,
Chennai. ... Appellant
v.
M/s. BNT Connections Impex Ltd.,
No.41, KKR Avenue, Moolakadai,
Perambur, Chennai. - 600 011. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 17.09.2012 in ITA.No.1287/Mds/2012 for the
Assessment Year 2008-09.
For Appellant : Mr.T. Ravikumar
Standing Counsel
For Respondent : Mr. R. Sivaraman
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T.C.A.No.144 of 2013
JUDGMENT
(Judgment was delivered by M. DURAISWAMY, J.)
We have heard Mr.T. Ravikumar, learned Standing Counsel for
the appellant/Revenue and Mr. R.Sivaraman 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 17.09.2012 made in ITA.No.1287/Mds/2012 on the file of the
Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the
Tribunal) for the Assessment Year 2008-09.
3.The appeal was admitted on 11.01.2016 on the following
substantial question of law:
“ Whether, on the facts and circumstances of
the case, the Appellate Tribunal was right in
holding that diversion of borrowed funds for
investment in its subsidiary would not lead to
disallowance of interest under section 36(1)(iii)?"
4.The learned Standing Counsel appearing for the appellant
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T.C.A.No.144 of 2013
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is dismissed as withdrawn on account of the Low Tax Effect.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.] [T.V.T.S., J.]
02.02.2021
Index : Yes/No
Internet : Yes
Rj
To
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T.C.A.No.144 of 2013
The Income Tax Appellate Tribunal,
Chennai, “C” Bench
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T.C.A.No.144 of 2013
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
Rj
T.C.A.No.144 of 2013
02.02.2021
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