Madras High Court
The Commissioner Of Income Tax vs M/S. Shriram Investments on 16 August, 2022
TCA.No.415 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 16.08.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No. 415 of 2014
The Commissioner of Income Tax,
Circle II,
121, M.G.Road,
Chennai 600 034 .. Appellant
Versus
M/s. Shriram Investments,
Mookambika Complex,
No.4, Lady Desika 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 “D” Bench,
Chennai, dated 27.11.2013 passed in I.T.A.No.1690/Mds/2013 in respect of
assessment year 2009-2010.
For Appellant : Mr. T. Ravikumar
Standing Counsel
For Respondent : No appearance
1/4
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TCA.No.415 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 27.11.2013 passed by the
Income Tax Appellate Tribunal “D” Bench, Chennai, in
I.T.A.No.1690/Mds/2013 for the assessment year 2009-2010.
2. On 22.08.2014, this tax case appeal is admitted by this Court on the
following substantial questions of law;
'1.Whether on the facts and in the circumstances of the
case, the Hon'ble Income Tax Appellate Tribunal was right
in law in holding that since the investments in shares of
group concerns to the tune of Rs.4,38,00,000/- are within
the course of trading activities and out of commercial
expediency as per the decision of the Apex Court in the
case of M/s.S.A.Builders and hence the provisions of
Section 14-A are not applicable?
2. Whether on the facts and in the circumstances of the
case, the Hon'ble Income Tax Appellate Tribunal was right
in law in holding that the amount of Rs.76,85,00,000/-
invested in sister concerns as share application money, is
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TCA.No.415 of 2014
not capable of yielding any income nor any right to a
benefit is vested in and hence the provisions of section 14-
A are not attracted as per the decision of the Coordinate
Bench of the Income Tax Appellate Tribunal in the case of
MSA Security Services and NMS Consultancy Pvt. Limited.
3. Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal was right in
following the cases of MSA Security (ITA
No.1523/Mds/2012 and NMS Consultancy (ITA
No.1524/Mds/2012) which has not reached finality and the
same is pending before this Hon'ble High Court?”
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 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.
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TCA.No.415 of 2014
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
msr
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.]
16.08.2022
msr
Index : Yes / No
To
1. The Asst. Commissioner of Income Tax,
Business Circle II, Chennai.
2. The Commissioner of Income Tax (Appeals) VI,
Chennai-34.
3. The Income Tax Appellate Tribunal “D” Bench,
Chennai.
T.C.A.No. 415 of 2014
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