Madras High Court
Commissioner Of Income Tax vs M/S.Laxmi Jewellery on 29 September, 2021
T.C.A.No.300 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.09.2021
CORAM :
THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
AND
THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP
T.C.A.No.300 of 2013
Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Laxmi Jewellery,
65, NSC Bose Road,
Sowcarpet,
Chennai 600 079. ... 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 13.09.2012 in I.TA.No.316/Mds/2012, Assessment Year 2008-09.
For Appellant : Mr.T.Ravi Kumar,
Senior Standing Counsel
For Respondent : Mr.Prithvi Chopda
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T.C.A.No.300 of 2013
JUDGMENT
(Judgment was delivered by T.S. SIVAGNANAM, J.)
We have heard Mr.T.Ravi Kumar, learned Senior Standing Counsel
for the appellant/Revenue and Mr.Prithvi Chopda , learned counsel for the
respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the Income
Tax Act, 1961 (“the Act” for brevity) is directed against the order dated
13.09.2012 made in I.T.A.No.316/Mds/2012 on the file of the Income Tax
Appellate Tribunal, Madras, “B” Bench (“the Tribunal” for brevity) for the
Assessment Year 2008-09.
3.The appeal was admitted on 23.07.2013 on the following substantial
question of law:
“Whether on the facts and in the circumstances of the
case, the Tribunal was right in holding that the assessee firm
is not a registered and beneficial shareholder in the group
company and cannot be assessed to be deemed dividend
under Section 2(22)(e) of the Income Tax Act?"
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T.C.A.No.300 of 2013
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 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 restore the appeal to be heard and decided
on merits. No costs.
(T.S.S., J.) (S.S.K., J.)
29.09.2021
jeni/mkn
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T.C.A.No.300 of 2013
Internet : Yes
Index : Yes / No
To
1.The Income Tax Appellate Tribunal, Madras, “B” Bench
2.The Commissioner of Income Tax,
Chennai.
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T.C.A.No.300 of 2013
T.S. SIVAGNANAM, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
jeni/mkn
T.C.A.No.300 of 2013
29.09.2021
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