Madras High Court
Commissioner Of Income Tax vs M/S.Four M Maritime P Ltd on 30 July, 2021
T.C.A.No.765 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.765 of 2016
Commissioner of Income Tax,
No.121, Nungambakkam High Road,
Chennai – 600 034. ... Appellant
Vs.
M/s.Four M Maritime P Ltd.,
No.4, Buhari Towers,
Moores Road, Chennai – 600 006. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“B” Bench, dated 24.10.2014 in I.TA.No.1971/Mds/2014, Assessment
Year 2010-11.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Ms.Sri Niranjani Srinivasan
for M/s.G.Baskar
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T.C.A.No.765 of 2016
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Ms.Sri Niranjani Srinivasan for
M/s.G.Baskar, 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 24.10.2014 made in I.TA.No.1971/Mds/2014 on the file of the
Income Tax Appellate Tribunal, Chennai, “B” Bench (for brevity, the
Tribunal) for the Assessment Year 2010-11.
3.The appeal was admitted on the following substantial question of
law:
“Whether on facts and circumstances of the
case, the Hon'ble ITAT is right in holding that the
ship operated by the assessee namely “M.V.Gem
of Ennore” transporting thermal coal from one
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T.C.A.No.765 of 2016
port to another within India was a qualifying ship
u/s.115 VD of the Income Tax Act and the assessee
was entitled for the benefit of Tonnage Tax
Scheme (TTS) provided under Chapter XII G of
the Act, which is contrary to the plain meaning of
clause (1) of Section 115 VD of the Income Tax
Act?”
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,
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T.C.A.No.765 of 2016
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.]
30.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “B” Bench
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T.C.A.No.765 of 2016
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.765 of 2016
30.07.2021
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