Madras High Court
The Commissioner Of Income Tax vs M/S.Opg Energy (P) Ltd on 17 August, 2022
T.C.A.No.324 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 17.08.2022
CORAM
THE HON'BLE Mr. JUSTICE R. MAHADEVAN
AND
THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ
Tax Case Appeal No.324 of 2021
The Commissioner of Income Tax
Chennai .. Appellant
Vs.
M/s.OPG Energy (P) Ltd.
No.6, Sardar Patel Road
Guindy, Chennai 600 032
PAN : AAACO4724G .. Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 18.01.2018 passed by the Income Tax Appellate
Tribunal, 'A' Bench, Chennai, in I.T.A.No.3415/Mds/2016.
For Appellant : Mr.T.Ravikumar
Standing Counsel
For Respondent : Mr.Ramachandran
JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
This tax case appeal has been filed by the appellant/Revenue, calling in
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T.C.A.No.324 of 2021
question the correctness of the order dated 18.01.2018 passed by the Income
Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.3415/Mds/2016,
relating to the assessment year 2012-13.
2. By order dated 22.06.2021, this Court admitted the aforesaid tax case
appeal on the following substantial questions of law :
“1) Whether the Tribunal was right in restricting the
disallowance under Section 14A read with Rule 8D to the extent
of exempt income earned by the Assessee especially when the
Assessing Officer has applied the provision of Section 14A read
with Rule 8D(iii) after being not satisfied with the explanation
given by the assessee, thus, no expenditure incurred attributable
to earning the exempt income?
2) Whether the Tribunal was right in deleting the addition
of Rs.6.09 crores made under Section 14A read with Rule 8D to
the book profits under Section 115 JB when clause (f) of
explanation (1) to Section 115 JB (2) specifically mandate that
the book profit u/s 115 JB shall be increased by the amount or
amounts of expenditure relatable to any income to which Section
10 (other than the provisions contained in clause (38) shall
apply?”
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T.C.A.No.324 of 2021
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.]
17.08.2022
Internet : Yes
gya
https://www.mhc.tn.gov.in/judis
T.C.A.No.324 of 2021
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
gya
To
1.The Commissioner of Income Tax
Chennai
2.The Income Tax Officer
Corporate Ward-5(1)
Chennai
3.The Commissioner of Income Tax (Appeals)-3
Chennai
4.The Income Tax Appellate Tribunal
'A' Bench, Chennai Tax Case Appeal No.324 of 2021
17.08.2022
https://www.mhc.tn.gov.in/judis
