Madras High Court
The Commissioner Of Income Tax vs M/S.Indbank Merchant Banking ... on 18 June, 2021
T.C.A.No.738 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.06.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.738 of 2013
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Indbank Merchant Banking Services Ltd
No.480, Anna Salai,
Chennai – 600 035 ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 24.05.2012 in I.TA.No.1984/Mds/2011, Assessment
Year 2002-03.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Ms.Sri Niranjani Srinivasan
for Mr.G.Baskar
Page 1/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.738 of 2013
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
Mr.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 24.05.2012 made in I.TA.No.1984/Mds/2011 on the file of the
Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the
Tribunal) for the Assessment Year 2002-03.
3.The appeal was admitted on 10.04.2014 on the following
substantial questions of law:
“1.Whether on the facts and in the
circumstances of the case, the Income Tax Appellate
Tribunal was right in law in upholding the order of
CIT(A) who deleted the addition on account of non-
recognition of income from non performing assets to
Page 2/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.738 of 2013
an extent of Rs.2,45,00,000/-?
2.Whether on the facts and in the
circumstances of the case, the Income Tax Appellate
Tribunal was right in law in holding that the
addition of Rs.2.45 crores on account of non
recognition of income from NPA is to be allowed
without write off in the books of accounts, which is a
condition preceding for claiming relief under Section
36(1)(vii) of the 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.
Page 3/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.738 of 2013
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.]
18.06.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Chennai, “C” Bench
2.The Commissioner of Income Tax,
Chennai.
Page 4/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.738 of 2013
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.738 of 2013
18.06.2021
Page 5/5
https://www.mhc.tn.gov.in/judis/
