Madras High Court
Commissioner Of Income Tax 2 vs M/S.L&T Infrastructure ... on 30 July, 2021
T.C.A.No.757 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.757 of 2016
Commissioner of Income Tax 2,
No.121, Nungambakkam High Road,
Chennai – 600 034. ... Appellant
Vs.
M/s.L&T Infrastructure Development
Projects Ltd.,
P.B.No.979, Mount Poonamallee Road,
Manapakkam, Chennai – 600 089. ... 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 21.11.2014 in I.TA.No.2226/Mds/2013, Assessment
Year 2007-08.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.N.V.Narayanan
for Mr.N.V.Balaji
JUDGMENT
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T.C.A.No.757 of 2016
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.N.V.Narayanan for
Mr.N.V.Balaji, 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 21.11.2014 made in I.TA.No.2226/Mds/2013 on the file of the
Income Tax Appellate Tribunal, Chennai, “B” Bench (for brevity, the
Tribunal) for the Assessment Year 2007-08.
3.The appeal was admitted on the following substantial question of
law:
“1.Whether in the given facts and
circumstances, ITAT is right in law in holding that
the investments made in Special purpose Vehicles
to be excluded from the total investments for the
purpose of computation of disallowance under
section 14A of the Income Tax Act?
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T.C.A.No.757 of 2016
2.Whether in the given facts and
circumstances, ITAT is right in law in holding that
the 2% of income derived from investments other
than investments in SPVs as disallowance u/s.14A
of the IT 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,
liberty is granted to the Revenue to make a mention to this Court to
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T.C.A.No.757 of 2016
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.757 of 2016
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.757 of 2016
30.07.2021
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