Madras High Court
Commissioner Of Income Tax-4 vs M/S.Mustang Trading And ... on 13 July, 2021
T.C.A.No.25 of 2017
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 13.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.25 of 2017
Commissioner of Income Tax-4,
No.121, Mahatma Gandhi Road,
Chennai – 600 034. ... Appellant
Vs.
M/s.Mustang Trading and Investments Pvt. Ltd.,
112, 5th Floor, Eldarado,
Nungambakkam High Road,
Chennai – 600 034. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“A” Bench, dated 29.07.2016 in I.TA.No.129/Mds/2016, Assessment
Year 2007-08.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
and Mr.S.Rajesh,
Standing Counsel
For Respondent : Notice served
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T.C.A.No.25 of 2017
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel and Mr.S.Rajesh, learned Standing Counsel for the
appellant/Revenue.
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 29.07.2016 made in I.TA.No.129/Mds/2016 on the file of the
Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the
Tribunal) for the Assessment Year 2007-08.
3.The appellant/Revenue has raised the following substantial
questions of law in the above appeal :
“1.Whether on the facts and circumstances of
the case, the Tribunal was right in holding that Rule
8D is not applicable for the pending proceedings
relating to Assessment year 2007-08, when Income
Tax Rules are held to be procedural in nature and
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T.C.A.No.25 of 2017
applicable for all pending proceedings by the Apex
Court in CWT-Vs-Sharvan Kumar Swarup & Sons
reported in 210 ITR 886?
2.Whether, in the facts and circumstances of
the case and in law, the Appellate Tribunal is correct
in deleting the addition made to book profits
computed u/s.115JB being expenditure incurred to
earn exempt income even though clause (f) of
explanation 1 to Section 115JB specifically provides
for it under Income Tax Act, 1961?”
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.
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T.C.A.No.25 of 2017
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 questions of law framed are 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.] [R.H., J.]
13.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “A” Bench
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T.C.A.No.25 of 2017
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.25 of 2017
13.07.2021
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