Commissioner Of Income Tax vs M/S. Sabre International Ltd
2022 Latest Caselaw 14710 Mad

                                                                                    TCA.No.404 of 2013


                                   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. 404 of 2013

                      Commissioner of Income Tax,
                      Chennai                                                 ..      Appellant
                                                          Versus

                      M/s. Sabre International Ltd.,
                      SF No.6/1, Nedungur,
                      Karudayampalayam (PO),
                      K. Paramathi, Karur 639 111                              .. 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
                      “B” Bench, dated 12.12.2012 passed in I.T.A.No.655/Mds/2012 in
                      respect of assessment year 2007-08.


                                          For Appellant     : M//s.M. Swaminathan
                                                              V. Pushpa
                                                              Standing Counsel




                      1/4

https://www.mhc.tn.gov.in/judis
                                                                                         TCA.No.404 of 2013


                                                             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 12.12.2012 passed by the

Income Tax Appellate Tribunal Madras “B” Bench, Chennai, in

I.T.A.No.655/Mds/2012 for the assessment year 2007-08.

2. On 13.08.2013, this tax case appeal is admitted by this Court on

the following substantial questions of law;

' 1. Whether on the fact and in the circumstances of the case, the Tribunal was right in holding that expenses incurred for setting up of the unit with respect to salary, Provident Fund, Staff Welfare expenses, electricity charges, water charges, travelling expenses, vehicle maintenance and other maintenance, all with respect to setting up of new unit in Karur and Panipet, are revenue in nature?

Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that assessee is entitled for deduction under Section 80IA with respect to the wind mill division?”

3. When the matter was taken up for consideration, the learned

https://www.mhc.tn.gov.in/judis TCA.No.404 of 2013

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
                      To

1. The Deputy Commissioner of Income Tax, Company Circle I, Tiruchirappalli.

2. The Commissioner of Income Tax (Appeals) Tiruchirappalli.

3. The Income Tax Appellate Tribunal Madras “B” Bench, Chennai

https://www.mhc.tn.gov.in/judis TCA.No.404 of 2013

R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

msr

T.C.A.No. 404 of 2013

22.08.2022

https://www.mhc.tn.gov.in/judis