Madras High Court
The Commissioner Of Income Tax vs M/S.Gmac Financial Services ... on 17 February, 2021
T.C.A.Nos.612 to 614 of 2011
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 17.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.Nos.612 to 614 of 2011
The Commissioner of Income Tax,
Chennai. ... Appellant in all 3 TCAs
Vs.
M/s.GMAC Financial Services India Ltd.,
Arihant 'E” Park II Floor,
No.117/1, L.B.Road,
Adyar, Chennai – 600 020. ... Respondent in all 3 TCAs
Appeals preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
"D" Bench, dated 20.04.2011 in I.TA.Nos.1537/Mds/2009, 1538/Mds/
2009 & 1539/Mds/2009 Assessment Year 2005-06, 2006-07 & 2007-08.
For Appellant : Ms.Brinda and
(in all 3 TCAs) Mr.Karthick Ranganathan,
Senior Standing Counsel
For Respondent : Mr.Shreekumar
(in all 3 TCAs) for Mr.R.Sivaraman
COMMON JUDGMENT
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T.C.A.Nos.612 to 614 of 2011
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Ms.Brinda, learned Standing Counsel for the
appellant/Revenue and Mr.Shreekumar, learned counsel for the
respondent/assessee.
2.The appeals, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) are directed against the order
dated 20.04.2011 made in I.TA. Nos.1537/Mds/2009, 1538/Mds/2009 &
1539/Mds/2009 on the file of the Income Tax Appellate Tribunal,
Chennai, "D" Bench (for brevity, the Tribunal) for the Assessment Years
2005-06, 2006-07 & 2007-08.
3.The appeals were admitted on 08.02.2012 on the following
substantial question of law:
“Whether on the facts and in the circumstances
of the case, the Tribunal was right in holding that the
guarantee commission cannot be treated as in the
nature of interest?”
4.The learned Senior Standing Counsel for the appellant submits
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T.C.A.Nos.612 to 614 of 2011
that the above appeals are 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 these
cases are less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeals
are dismissed as withdrawn on account of the Low Tax Effect.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 these cases 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 appeals to be heard and decided on merits. No costs.
[M.D., J.] [T.V.T.S., J.]
Index : Yes/No 17.02.2021
Internet : Yes (1/2)
va
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
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T.C.A.Nos.612 to 614 of 2011
va
To
The Income Tax Appellate Tribunal, Chennai, "D" Bench
T.C.A.Nos.612 to 614 of 2011
(1/2)
17.02.2021
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