The Commissioner Of Income Tax vs M/S.Road Safety Club Pvt. Ltd
2022 Latest Caselaw 14031 Mad

                                                                              T.C.A.No.93 of 2014

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED 05.08.2022

                                                        CORAM

                                    THE HON'BLE Mr. JUSTICE R. MAHADEVAN
                                                         AND
                                  THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ



                                           Tax Case Appeal No.93 of 2014



                The Commissioner of Income Tax
                Chennai                                                         .. Appellant

                                                         Vs.

                M/s.Road Safety Club Pvt. Ltd.
                4 Lady Desikachari Road
                Mylapore
                Chennai 600 004                                                 .. Respondent


                          Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961

                against the order dated 25.06.2010 passed by the Income Tax Appellate

                Tribunal, 'B' Bench, Chennai, in I.T.A.No.457/Mds/2010.

                                        For Appellant    : Mr.N.V.Balaji
                                        For Respondent : No appearance




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                                                                                    T.C.A.No.93 of 2014

                                                   JUDGMENT

(Judgment was delivered by R. MAHADEVAN, J.)

This tax case appeal has been filed by the appellant/Revenue, calling in

question the correctness of the order dated 25.06.2010 passed by the Income

Tax Appellate Tribunal, 'B' Bench, Chennai, in I.T.A.No.457/Mds/2010,

relating to the assessment year 2006-07.

2. By order dated 09.07.2010, this Court admitted the aforesaid tax case

appeal on the following substantial questions of law :

“(i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that only 1/8th of the membership fees received during the year should be treated as income of the assessee?

(ii) Whether on the 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?

(iii) Whether on the 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 and loss account?”

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T.C.A.No.93 of 2014

3. 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 appeal 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.

4. 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.]
                                                                             05.08.2022
                Index        : Yes / No
                gya

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T.C.A.No.93 of 2014

R. MAHADEVAN, J.

AND MOHAMMED SHAFFIQ, J.

gya

To

1.The Assistant Commissioner of Income Tax Company Circle-V(4) Chennai

2.The Commissioner of Income Tax (Appeals) Chennai

3.The Income Tax Appellate Tribunal 'B' Bench Chennai Tax Case Appeal No.93 of 2014

05.08.2022 (2/2)

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