Commissioner Of Income Tax vs M/S.Shriram Chits & Investments ...
2021 Latest Caselaw 1525 Mad

                                                                            T.C.A.No.1575 of 2008

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATE: 22.01.2021

                                                     CORAM:

                                    THE HON'BLE MR. JUSTICE M.DURAISWAMY
                                                     AND
                                   THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI

                                                T.C.A.No.1575 of 2008

                     Commissioner of Income Tax,
                     Chennai.                                                   ... Appellant
                                                         Vs.


                     M/s.Shriram Chits & Investments P. Ltd.,
                     149, Greams Road,
                     Chennai – 6.                                               ... 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 19.12.2007 in I.TA.No.1060/Mds/2006, Assessment
                     Year 2002-03.


                               For Appellant    : Mr.J.Narayanasamy,
                                                  Senior Standing Counsel

                               For Respondent   : Mr.R.Sivaraman




                     Page 1/4
https://www.mhc.tn.gov.in/judis/
                                                                             T.C.A.No.1575 of 2008

                                                     JUDGMENT

(Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.J.Narayanasamy, learned Senior Standing

Counsel for the appellant/Revenue and Mr.R.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 19.12.2007 made in I.TA.No.1060/Mds/2006 on the file of the

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

Tribunal) for the Assessment Year 2002-03.

3.The appeal was admitted on 06.11.2008 on the following

substantial question of law:

“Whether on the facts and circumstances of the case, the Tribunal was right in treating the payments due from defaulting subscribers as bad debt, when three is no relationship of creditor and debtor between them?”

Page 2/4 https://www.mhc.tn.gov.in/judis/ T.C.A.No.1575 of 2008

4.The learned Senior 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.]    [T.V.T.S., J.]
                     Index : Yes/No                                        22.01.2021
                     Internet : Yes                                           (2/2)
                     va

                     Page 3/4

https://www.mhc.tn.gov.in/judis/ T.C.A.No.1575 of 2008

M.DURAISWAMY, J.

and T.V.THAMILSELVI, J.

va

To

The Income Tax Appellate Tribunal, Chennai, “C” Bench

T.C.A.No.1575 of 2008 (2/2)

22.01.2021

Page 4/4 https://www.mhc.tn.gov.in/judis/