Madras High Court
Commissioner Of Income Tax vs M/S. Tvs Capital Fund Limited on 18 August, 2022
T.C.A.No.864 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.08.2022
CORAM :
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
AND
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No.864 of 2016
Commissioner of Income Tax,
Corporate Circle - 3,
Chennai. ... Appellant
Versus
M/s. TVS Capital Fund Limited,
Jayalakshmi Estates,
No.29, Haddows Road,
Chennai 600 006.
PAN: AAACT 1154 H ... Respondent
Appeal preferred under Section 260A of the Income Tax Act, 1961,
against the order dated 15.06.2016 passed by the Income Tax Appellate
Tribunal, “A” Bench, Chennai, in I.T.A.No.15/Mds/2016.
For Appellant : Mr.M.Swaminathan,
Senior Standing Counsel
Mrs.V.Pushpa, Standing Counsel
For Respondent : Mr.R.Venkatanarayanan
for M/s. Subbaraya Aiyar
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T.C.A.No.864 of 2016
JUDGMENT
(Judgment of the Court was delivered by R.MAHADEVAN, J.)
This tax case appeal has been filed by the appellant / Revenue,
challenging the order dated 15.06.2016 passed by the Income Tax Appellate
Tribunal, “A” Bench, Chennai, in I.T.A.No.15/Mds/2016, relating to the
assessment year 2011-12.
2.By order dated 31.01.2017, this court admitted the aforesaid tax case
appeal on the following substantial questions of law:
“ (i) Whether, on the facts and in the circumstances of the
case and in law, the Tribunal was correct and justified in holding
that strategic investments are not liable for disallowance under
Section 14A when the provisions of the said section as well as Rule
8D does not provide for any such exemption?
(ii) Whether, on the facts and in the circumstances of the case
and in law, the Tribunal was justified in holding that investment
made in sister concerns are not liable for disallowance under
Section 14A when the provisions of the said section as well as Rule
8D does not provide for any such exemption? "
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T.C.A.No.864 of 2016
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 question of law for determination in an
appropriate case. No costs.
(R.M.D., J.) (M.S.Q., J.)
18.08.2022
Internet : Yes
Index : Yes / No
av
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T.C.A.No.864 of 2016
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
av
To
1. The Income Tax Appellate Tribunal,
“A” Bench, Chennai.
2. The Commissioner of Income Tax,
Corporate Circle - 3,
Chennai.
3. The Commissioner of Income Tax (Appeals) - 11,
Chennai.
T.C.A.No.864 of 2016
18.08.2022
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