Madras High Court
Commissioner Of Income Tax-Iv vs Chandra Ramesh on 11 August, 2022
T.C.A.Nos.997 to 1000 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 11.08.2022
CORAM :
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD
T.C.A.Nos.997 to 1000 of 2010
Commissioner of Income Tax-IV,
Chennai. ... Appellant in all TCAs
Versus
Chandra Ramesh ... Respondent in all TCAs
Appeals preferred under Section 260A of the Income Tax Act, 1961,
against the order dated 05.02.2010 passed by the Income Tax Appellate
Tribunal, “C” Bench, Chennai, in I.T.A.Nos.1683, 1684, 1685 and
1686/Mds/2008.
For Appellant : Mr.T.Ravikumar
Senior Standing Counsel in all TCAs
For Respondent : Mr.R.Venkatanarayanan
for M/s.Subbaraya Aiyar in all TCAs
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T.C.A.Nos.997 to 1000 of 2010
COMMON JUDGMENT
(Judgment of the Court was delivered by R.MAHADEVAN, J.)
These tax case appeals have been filed by the appellant / Revenue,
challenging the common order dated 05.02.2010 passed by the Income Tax
Appellate Tribunal, “C” Bench, Chennai, in I.T.A.Nos.1683, 1684, 1685 and
1686/Mds/2008, relating to the respective assessment years 1998-99, 1999-
2000, 2000-01 & 2003-04.
2.By order dated 11.01.2011, this court admitted the aforesaid tax case
appeals on the following substantial questions of law:
“(i) Whether on the facts and in the circumstances of the
case, the Income-tax Appellate Tribunal was right in holding
that the interest on borrowed funds diverted for investments in
C.R. Finance & Securities Pvt. Ltd., and C.R. Financial Options
Ltd., could not be disallowed, applying the decision of the
Supreme Court in the case of S.A. Builders Ltd., vs. CIT. (288
ITR 1) without observing the test of commercial expediency has
not been satisfied in the assessee's case? and
(ii) Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in not
holding that the interest in borrowed funds for earning exempt
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T.C.A.Nos.997 to 1000 of 2010
income by way of dividends from shares was not allowable
under section 14A of the Act for the Assessment Years 1998-99,
1999-2000 and 2000-01?"
3. When the matters were 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 these appeals 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 appeals, wherein, the tax effect is said
to be less than the monetary limit imposed, are dismissed as withdrawn,
keeping open the substantial questions of law for determination in appropriate
cases. No costs.
[R.M.D., J.] [J.S.N.P., J.]
11.08.2022
Internet : Yes
Index : Yes / No
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T.C.A.Nos.997 to 1000 of 2010
R. MAHADEVAN, J.
and
J.SATHYA NARAYANA PRASAD, J.
av
To
1. The Income Tax Appellate Tribunal,
“C” Bench, Chennai.
2. The Commissioner of Income Tax - IV,
Chennai.
3. The Income Tax Officer,
Business Ward - 1(1),
Chennai - 600 034.
4. The Commissioner of Income Tax (Appeals)-VI,
Chennai.
T.C.A.Nos.997 to 1000 of 2010
11.08.2022
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