Madras High Court
The Commissioner Of Income Tax vs Mr. Arumugam Olaganathan on 22 August, 2022
TCA.No.507 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 22.08.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No. 507 of 2014
The Commissioner of Income Tax,
Chennai .. Appellant
Versus
Mr. Arumugam Olaganathan
2-A/2, Sparatan Nagar,
Mugappair,
Chennai 600 050 .. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal Madras “D”
Bench, Chennai, dated 27.11.2013 passed in I.T.A.No.1309/Mds/2013 in
respect of assessment year 2009-10.
For Appellant : Mr. T. Ravikumar
Standing Counsel
1/4
https://www.mhc.tn.gov.in/judis
TCA.No.507 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 Madras “D” Bench, Chennai, in
I.T.A.No.1309/Mds/2013 for the assessment year 2009-10.
2. On 11.08.2014, this tax case appeal is admitted by this Court on the
following substantial questions of law;
' 1. Whether in and facts and circumstances of the case
the Tribunal was right in deleting the disallowance made
under section 14A of the Income Tax Act read with Rule 8D
of the Income Tax Rules?
2. Whether in the facts and circumstances of the case
the Tribunal was right in deleting the addition of Rs.80
Lakhs u/s.2(22)(e) on the ground that the transaction was a
business transaction when section 2(22)(e) does not make
any distinction as to business transaction or individual
transaction?
3. Whether in the facts and circumstances of the case
the Tribunal is right in simply extracting the order of the
CIT (A) without examining any point independently and
without giving any finding on facts, when the Tribunal is
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TCA.No.507 of 2014
the final fact finding authority?”
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.
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.]
22.08.2022
msr
Index : Yes / No
https://www.mhc.tn.gov.in/judis
TCA.No.507 of 2014
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
msr
To
1. The Joint Commissioner of Income Tax,
(OSD) Company Circle-I(1), Chennai.
2. The Commissioner of Income Tax (Appeals) VI,
Chennai-34.
3. Income Tax Appellate Tribunal Madras “D” Bench, Chennai,
T.C.A.No. 507 of 2014
22.08.2022
https://www.mhc.tn.gov.in/judis
