Madras High Court
Commissioner Of Income Tax vs M/S.Metropolitan Transport on 8 March, 2021
T.C.A.No.297 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 08.03.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.297 of 2014
Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Metropolitan Transport
Corporation (Chennai) Ltd.,
“Pallavan House”, Anna Salai,
Chennai – 600 002. ... 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 07.08.2013 in I.TA.No.1169/Mds/2013 Assessment
Year 2005-06.
For Appellant : Mr.Karthick Ranganathan,
Senior Standing Counsel
For Respondent : Mr.R.Venkata Narayanan
JUDGMENT
Page 1/4
https://www.mhc.tn.gov.in/judis/
T.C.A.No.297 of 2014
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthick Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.R.Venkata Narayanan,
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 07.08.2013 made in I.TA.No.1169/Mds/2013 on the file of the
Income Tax Appellate Tribunal, Chennai, "B" Bench (for brevity, the
Tribunal) for the Assessment Year 2005-06.
3.The appeal was admitted on 17.07.2014 on the following
substantial question of law:
“Whether the Tribunal erred in not considering
the claim of the Department that no deduction could
be allowed in respect of provision for Insurance Fund
and no fault liability except on the actual amount
expended by the assessee on that account?”
4.The learned Senior Standing Counsel for the appellant submits
Page 2/4
https://www.mhc.tn.gov.in/judis/
T.C.A.No.297 of 2014
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 these
cases are 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is dismissed as withdrawn on account of the Low Tax Effect.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
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.
Index : Yes/No [M.D., J.] [T.V.T.S., J.]
Internet : Yes 08.03.2021
va
M.DURAISWAMY, J.
Page 3/4
https://www.mhc.tn.gov.in/judis/
T.C.A.No.297 of 2014
and
T.V.THAMILSELVI, J.
va
To
The Income Tax Appellate Tribunal, Chennai, "B" Bench
T.C.A.No.297 of 2014
08.03.2021
Page 4/4
https://www.mhc.tn.gov.in/judis/
