Madras High Court
The Principal Commissioner Of vs M/S.Expo Freight Pvt. Ltd on 19 January, 2021
TCA.No.44 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 19.1.2021
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MS.JUSTICE R.N.MANJULA
Tax Case Appeal No.44 of 2021
The Principal Commissioner of
Income Tax, Corporate Range 2(1),
Chennai-34 ...Appellant
Vs
M/s.Expo Freight Pvt. Ltd.,
Chennai-34 ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against
the order dated 20.3.2017 passed by the Income Tax Appellate
Tribunal, 'A' Bench, Chennai made in I.T.A.No.2729/Mds/2016 for the
assessment year 2009-10.
For Appellant: Mr.Karthik Ranganathan, SC
assisted by Mr.S.Rajesh, JSC
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
https://www.mhc.tn.gov.in/judis/
TCA.No.44 of 2021
the Income Tax Act, 1961 ('the Act' for brevity) challenging the order
dated 20.3.2017 made in I.T.A.No.2729/Mds/2016 on the file of the
Income Tax Appellate Tribunal, Chennai 'A' Bench ('the Tribunal' for
brevity) for the assessment year 2009-10.
2. The Revenue has filed this appeal by raising the following
substantial questions of law:
“i. Whether, on the facts and
circumstances of the case and in law, the
Tribunal is correct in law in allowing the
assessee's claim of Rs.66,43,419/- as bad
debts ?
ii. Whether, on the facts and
circumstances of the case, the Tribunal is
correct in law in not considering the decision of
the Tribunal at Mumbai in the case of Ricoh
India Ltd. [2013-TIOL-937-ITAT-MUM] dated
19.3.2013 wherein it is held that there can be
no question of incurring any business loss or
treating the amount TDS not received as short
receipts ? And
iii. Whether, on the facts and
circumstances of the case, the Tribunal is
correct in law in considering the decision of the
Hon'ble Supreme Court in the case of M/s.TRF
Ltd., where the facts of the case are
distinguishable from the facts of the assessee's
https://www.mhc.tn.gov.in/judis/
TCA.No.44 of 2021
case?”
3. We have heard Mr.Karthik Ranganathan, learned Standing
Counsel assisted by Mr.S.Rajesh, learned Junior 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
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 questions
of law raised are 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.
19.1.2021
RS
https://www.mhc.tn.gov.in/judis/
TCA.No.44 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
RS
To
The Income Tax Appellate Tribunal, 'A' Bench, Chennai.
TCA.No.44 of 2021
19.1.2021
https://www.mhc.tn.gov.in/judis/
