Principal Commissioner Of Income ... vs M/S.Narmada Infrastructure ...
2022 Latest Caselaw 9913 Mad

                                                                                  T.C.A.No.441 of 2017

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED : 13.06.2022

                                                        CORAM :

                           THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                              AND
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                                   T.C.A.No.441 of 2017

                  Principal Commissioner of Income Tax 4,
                  No.121, Mahatma Gandhi Road,
                  Chennai 600 034.                                                  ... Appellant
                                                   Versus


                  M/s.Narmada Infrastructure Construction
                       Enterprises Ltd,
                  Mount Poonammallee Road,
                  Manapakkam, TCTC Building,
                  Chennai-600 089.
                  PAN: AAA CN 3579 L                                               ...
                  Respondent

                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order of the Income Tax Appellate Tribunal, Chennai, “C” Bench,
                  dated 25.11.2016 in I.TA.No.1559/Mds/2016.


                                   For Appellant            :     Mr.Karthik Ranganathan
                                                                  Standing Counsel

                                   For Respondent           :     No appearance


                  Page 1/4
https://www.mhc.tn.gov.in/judis
                                                                                   T.C.A.No.441 of 2017



                                                  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 25.11.2016 passed by the Income Tax Appellate

Tribunal, Bench 'C', Chennai, in I.T.A.No.1559/Mds/2016, relating to the

assessment year 2004-05.

2. By order dated 09.08.2017, this court admitted the aforesaid tax

case appeal on the following substantial questions of law:

“(i) Whether Foreign Exchange loss in respect of loan obtained for purchase of capital asset would be capital loss, even though the capital asset acquired through such loan was not imported into the country from abroad?

(ii) Whether Section 43A of the Income Tax Act, 1961, relating to deduction of foreign exchange loss from the actual cost of the asset, would be attracted in a case where the asset is acquired within the country but by obtaining finance from a foreign bank in foreign exchange?”

Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.441 of 2017

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.)
                                                                              13.06.2022


                  Internet : Yes
                  Index : Yes / No
                  psa/av


                  Page 3/4

https://www.mhc.tn.gov.in/judis T.C.A.No.441 of 2017

R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

psa/av

To

1. The Income Tax Appellate Tribunal, “C” Bench, Chennai,

2. Principal Commissioner of Income Tax 4, No.121, Mahatma Gandhi Road, Chennai 600 034.

3. The Assistant Commissioner of Income Tax Corporate Circle 4(2), Chennai.

4. The Commissioner of Income Tax (Appeals) - 8, Chennai.

T.C.A.No.441 of 2017

13.06.2022

Page 4/4 https://www.mhc.tn.gov.in/judis