Madras High Court
Commissioner Of Income Tax vs M/S.Road Safety Club P Ltd on 4 August, 2022
TCA.No.752 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 04.08.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No. 752 of 2014
Commissioner of Income Tax,
Chennai .. Appellant
Versus
M/s.Road Safety Club P Ltd.,
No.4, Lady Desikachari Road,
Mylapore, Chennai 600 004. .. Respondent
Tax Case Appeal filed under Section 260 A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal Madras “B”
Bench, dated 16.12.2010 passed in ITA.No.1651/Mds/2010 for the
assessment year 2007-08.
For Appellant : Mr.T.Ravikumar
Standing Counsel
For Respondent : Mr.R.Sivaraman
1/5
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TCA.No.752 of 2014
JUDGMENT
(Judgment of the Court was delivered by R. MAHADEVAN, J.)
This Tax Case Appeal has been filed by the appellant / revenue,
questioning the correctness of the order dated 16.12.2010 passed by the
Income Tax Appellate Tribunal Madras “B” Bench, in ITA. No. 1651/ Mds/
2010 for the assessment year 2007-08 on the following substantial
questions of law;
' 1. Whether on the facts and circumstances of the case,
the Income Tax Appellate Tribunal was right in holding
that only a portion (1/8 th or 1/5th or 1/3rd) of the
membership fees received during the year should be
treated as income of the assessee?
2. Whether on facts and circumstances of the case, the
Tribunal was right in holding that the claim for deduction
towards provision made for safety bonus payable to
members who made no claim is allowable as deduction?
3. Whether on facts and circumstances of the case, the
Tribunal was right in confirming the order of the
Commissioner of Income Tax (Appeals) directing the
assessing officer to allow claim for deduction of insurance
premium paid over and above the sum debited to the profit
https://www.mhc.tn.gov.in/judis
TCA.No.752 of 2014
and loss account?'
2. When the matter was taken up for consideration, the learned counsel
for the appellant / Revenue brought to the notice of this court the Circular
No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes,
wherein, it is stipulated that appeals shall not be filed/pursued by the
Department before the High Court in cases where the tax effect does not exceed
Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in
this appeal is less than the threshold limit.
3. In the light of the aforesaid submissions made by the learned counsel
for the appellant / Revenue, the present appeal, wherein, the tax effect is said to
be less than the monetary limit imposed, is dismissed as withdrawn, keeping
open the substantial questions of law for determination in an appropriate case.
No costs.
[R.M.D,J.] [M.S.Q.,
J.]
04.08.2022
msr
Index : Yes / No
https://www.mhc.tn.gov.in/judis
TCA.No.752 of 2014
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
msr
To
1. The Assistant Commissioner of Income Tax,
Company Circle V (4), Chennai.
2. The Commissioner of Income Tax (Appeals)-V
Chennai-34
3. The Income Tax Appellate Tribunal Madras “B” Bench,
Chennai.
T.C.A.No. 752 of 2014
https://www.mhc.tn.gov.in/judis
TCA.No.752 of 2014
04.08.2022
https://www.mhc.tn.gov.in/judis
