Madras High Court
The Commissioner Of Income Tax vs M/S.Indo Tech Transformers Ltd on 29 June, 2021
T.C.A.No.320 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.06.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.320 of 2015
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Indo Tech Transformers Ltd.
DP 36, SIDCO Industrial Estate,
Thirumazhisai,
Chennai – 600 107. ... 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 13.05.2014 in I.TA.No.313/Mds/2014, Assessment
Year 2005-06.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.R.Venkata Narayanan
for M/s.Subbaraya Aiyar Padmanabhan
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T.C.A.No.320 of 2015
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.R.Venkata Narayanan 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 13.05.2014 made in I.TA.No.313/Mds/2014 on the file of the
Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the
Tribunal) for the Assessment Year 2005-06.
3.The appeal was admitted on 15.07.2015 on the following
substantial questions of law:
“1.Whether on the facts and in the
circumstances of the case, the Tribunal was right in
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T.C.A.No.320 of 2015
holding that the assessee was eligible for setting off
of brought forward losses pertaining to the
assessment year 2004-05 in the present assessment
year without filing a revised return especially when
the time limit that had been prescribed u/s.139(4) for
filing the revised return of income expired only on
31.03.2006 and the High Court had passed order in
September, 2005?
2.Is not the finding of the Tribunal is perverse
and bad by holding that the assessee was under the
bona fide belief that it can claim set off or brought
forward of loss in the next assessment year ?
3.Whether finding of the Tribunal is proper by
holding that the assessee can claim set off of brought
forward loss in the assessment year 2005-06 as the
order of the High Court passed for amalgamation
was passed in September, 2005 and there is no
statutory provisions under the Income Tax Act for
allowing the brought forward losses without filing
revised return?
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T.C.A.No.320 of 2015
4.Whether the losses of the assessment year
2004-05 can be claimed in the subsequent
assessment year 2005-2006 especially when there is
no provision under the Income Tax Act allowing
brought forward losses?”
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
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T.C.A.No.320 of 2015
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.]
29.06.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Chennai, “C” Bench
2.The Commissioner of Income Tax,
Chennai.
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T.C.A.No.320 of 2015
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.320 of 2015
29.06.2021
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