Madras High Court
Principal Commissioner Of Income ... vs M/S.Indowind Energy Ltd on 5 January, 2021
TCA.No.556 of 2018
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.556 of 2018
Principal Commissioner of Income Tax 2,
No.121, Mahatma Gandhi Road,
Chennai - 600 034. ...Appellant
Vs
M/s.Indowind Energy Ltd.,
Kothari Buildings, IV Floor,
114, Nungambakkam High Road,
Chennai - 600 034.
PAN: AAACI1806M ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the
order dated 25.10.2016 made in ITA.No.937/Mds/2015 on the file of the
Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year
2008-09.
For Appellant: Mr.T.R.Senthil Kumar
Senior Standing Counsel
For Respondent: Mr.A.S.Sriraman
1/4
https://www.mhc.tn.gov.in/judis/
TCA.No.556 of 2018
JUDGMENT
(Delivered by T.S.Sivagnanam,J)
We have heard Mr.T.R.Senthil Kumar, 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
dated 25.10.2016 made in ITA.No.937/Mds/2015 on the file of the Income
Tax Appellate Tribunal, Madras 'B' Bench (for brevity, the Tribunal) for the
assessment year 2008-09.
3. The appeal was admitted on 28.08.2018 on the following
substantial question of law:
“Whether in the facts and circumstances of the
case and in law, the ITAT was correct in allowing
the bad debt written off on account of advance
made to M/s.Wipro Finance Ltd. when the
assessee is not into the business of real estate?"
https://www.mhc.tn.gov.in/judis/
TCA.No.556 of 2018
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 08.8.2019 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 question of law
framed is 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.
(T.S.S.,J.) (R.N.M.,J.)
05.01.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
hvk
https://www.mhc.tn.gov.in/judis/
TCA.No.556 of 2018
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
To
1. The Income Tax Appellate Tribunal,
Madras 'B' Bench.
2. Principal Commissioner of Income Tax 2,
No.121, Mahatma Gandhi Road,
Chennai - 600 034.
TCA.No.556 of 2018
05.01.2021
https://www.mhc.tn.gov.in/judis/
