Madras High Court
The Commissioner Of Income Tax vs M/S.Caplin Point Laboratories ... on 15 July, 2021
T.C.A.No.848 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 15.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.848 of 2014
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Caplin Point Laboratories Ltd.,
No.3, Narbavi Lakshmanan Street,
T.Nagar, Chennai – 600 017. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“D” Bench, dated 31.01.2014 in I.TA.No.667/Mds/2013, Assessment
Year 2009-10.
For Appellant : Mr.T.Ravi Kumar
Senior Standing Counsel
For Respondent : Mr.Vikram Vijayaraghavan
for M/s.Subbaraya Aiyar Padmanabhan
JUDGMENT
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T.C.A.No.848 of 2014
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.T.Ravi Kumar, learned Senior Standing
Counsel for the appellant/Revenue and Mr.Vikram Vijayaraghavan for
M/s.Subbaraya Aiyar Padmanabhan, 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 31.01.2014 made in I.TA.No.667/Mds/2013 on the file of the
Income Tax Appellate Tribunal, Chennai, “D” Bench (for brevity, the
Tribunal) for the Assessment Year 2009-10.
3.The above appeal has been admitted on the following substantial
questions of law :
“1.Whether on the facts and in the
circumstances of the case, the Tribunal was right in
allowing MAT credit of the amalgamating company
to be carried forward and given credit in the hands
of the amalgamated company?
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T.C.A.No.848 of 2014
2.Is not the finding of the Tribunal bad,
especially when section 115JAA is a self contained
code an there is no provision to allow credit of the
amalgamating entity in the hands of the
amalgamated entity as in Section 72A?”
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 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
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T.C.A.No.848 of 2014
Court to restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
15.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “D” Bench
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T.C.A.No.848 of 2014
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.848 of 2014
15.07.2021
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