Madras High Court
The Commissioner Of Income Tax vs M/S Elgi Ultra Industries Ltd on 23 June, 2021
T.C.A.No.911 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 23.06.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R.HEMALATHA
T.C.A.No.911 of 2014
The Commissioner of Income Tax,
Coimbatore. ... Appellant
v.
M/s Elgi Ultra Industries Ltd.,
Elgi House, Trichy Road,
Coimbatore – 641 018. ... 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 18.11.2013 in ITA.No.1616/Mds/2013 for the
Assessment Year 2010-2011.
For Appellant : Mr. T.R.Senthil Kumar,
Senior Standing Counsel
Assisted by K.G. Usha Rani
For Respondent : K. Krishnamoorthy
Page 1/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.911 of 2014
JUDGMENT
(Judgment was delivered by M. DURAISWAMY, J.)
We have heard Mr. T.R.Senthil Kumar, learned Senior Standing
Counsel for the appellant/Revenue and Mr. K. Krishnamoorthy, 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 18.11.2013 made in I.T.A.No.1616/Mds/2013 on the file of the
Income Tax Appellate Tribunal, Chennai, "C" Bench (for brevity, the
Tribunal) for the Assessment Year 2010-2011.
3. The above appeal was admitted on the following substantial
questions of law:
“(i)Whether under the facts and circumstances
of the case the Income Tax Appellate Tribunal was
correct in allowing the claim of Loss on sale of
actionable claims as ‘business loss?
Page 2/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.911 of 2014
(ii) Whether under the facts and circumstances
of the case, Income Tax Appellate Tribunal was
correct in holding that the transaction was a sham
transaction entered into with the sole objective of
evading tax, particularly to divert the loss to its sister
concern? "
4. The learned Senior Standing Counsel appearing 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 is left open. In the event the tax
effect in this case is above the threshold limit fixed in the said Circular,
Page 3/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.911 of 2014
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.]
Index : Yes/No 23.06.2021
Internet : Yes
Rj
To
The Income Tax Appellate Tribunal,
Chennai,"C" Bench
Page 4/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No.911 of 2014
M. DURAISWAMY, J.
and
R.HEMALATHA,J
Rj
T.C.A.No.911 of 2014
23.06.2021
Page 5/5
https://www.mhc.tn.gov.in/judis/
