Madras High Court
Principal Commissioner Of Income ... vs M/S.Megh Sakariya International ... on 5 January, 2021
TCA.No.12 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05.01.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
Tax Case Appeal No.12 of 2021
Principal Commissioner of Income Tax,
Corporate Circle-4(1),
Chennai - 34. ...Appellant
Vs
M/s.Megh Sakariya International P. Ltd.,
No.16, Kesava Iyer Street,
Park Town, Chennai - 600 003.
PAN: AAACS8168G ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the
order dated 05.09.2018 made in ITA.No.59/CHNY/2018 on the file of the
Income Tax Appellate Tribunal, Madras 'C' Bench for the assessment year
2014-15.
For Appellant: Mr.R.Karthik Ranganathan
Senior Standing Counsel
For Respondent: Mr.A.S.Sriraman
1/6
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TCA.No.12 of 2021
JUDGMENT
(Delivered by T.S.Sivagnanam,J)
We have heard Mr.R.Karthik Ranganathan, learned Senior Standing
Counsel for the Appellant – Revenue and Mr.A.S.Sriraman, learned counsel
appearing for the respondent.
2. This appeal, filed by the Revenue under Section 260A of the Income
Tax Act, 1961 (for short, the Act) is directed against the order 05.09.2018
made in ITA.No.59/CHNY/2018 on the file of the Income Tax Appellate
Tribunal, Madras 'C' Bench (for brevity, the Tribunal) for the assessment
year 2014-15.
3. The appellant has raised the following substantial questions of law
for consideration:
“1.Whether on the facts and circumstances of
the case and in law, the Hon'ble ITAT is right in
holding that the loss on capital incurred by the
assessee company during the A.Y. 2014-15 to the
extent of Rs.2.02 crores is eligible for deduction
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TCA.No.12 of 2021
u/s 36(1)(ii) of the I.T. Act and qualify to be a bad
debt?
2.Whether on the facts and circumstances of
the case and in law, the Hon'ble ITAT is right and
justified in holding that the decision of the Apex
Court in the case of M/s.TRF Ltd., is applicable to
the assessee's case when the facts of the assessee's
case are entirely different and distinguishable
from the facts of the said decision?"
4. The learned Senior Standing Counsel appearing 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 on account of the low tax effect. The substantial questions of law
framed are left open. In the event the tax effect is above the threshold limit
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TCA.No.12 of 2021
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.
(T.S.S.,J.) (R.N.M.,J.)
05.01.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
hvk
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TCA.No.12 of 2021
To
1. The Income Tax Appellate Tribunal,
Madras 'C' Bench.
2. Principal Commissioner of Income Tax,
Corporate Circle-4(1),
Chennai - 34.
https://www.mhc.tn.gov.in/judis/
TCA.No.12 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
TCA.No.12 of 2021
05.01.2021
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