Madras High Court
The Principal Commissioner Of Income ... vs V.Sriram (Huf) on 19 October, 2024
Bench: R.Suresh Kumar, C.Saravanan
T.C.A.No.350 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 19.10.2024
CORAM
THE HON'BLE MR.JUSTICE R.SURESH KUMAR
AND
THE HON'BLE MR.JUSTICE C.SARAVANAN
Tax Case Appeal No.350 of 2023
The Principal Commissioner of Income Tax-I
Chennai. .... Appellant
Vs.
V.Sriram (HUF) .... Respondent
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Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order of the Income Tax Appellate Tribunal, 'B' Bench Chennai,
dated 22.02.2023 made in I.T.A.No.863/Chny/2022.
For Appellant : Mr.T.Ravikumar
Senior Standing Counsel
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JUDGMENT
(Delivered by R.SURESH KUMAR, J.)
This Tax Case Appeal has been filed by the Revenue calling in question
the correctness of the order passed by the Income Tax Appellate Tribunal,
Chennai by raising the following substantial questions of law:
https://www.mhc.tn.gov.in/judis
"(i) Whether on the facts and in the circumstances of the
Company, Tribunal was justified in holding that provisions of
Section 2(22)(e) of the Income Tax Act, 1961 are not
applicable to the Assessee?
(ii) Is not the reasoning and finding of the Tribunal bad, by
holding that the transaction between the Assessee and the
IEIL could be treated as a running current account between
the shareholder and the company and that it was not a loan or
advance in order to apply Section 2(22)(e) of the Income Tax
Act especially when the Assessee did not provide the
documentary proof to substantiate the same?"
2. It is brought to our notice by the learned Standing Counsel for the
appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of
2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit
imposed and therefore, the appeal can be disposed of, keeping the substantial
questions of law raised in this appeal open for adjudication at a later point of
time.
3. It is further submitted by the learned Standing Counsel that to an e-
mail communication dated 04.10.2024 requesting instructions as to whether
this case is covered under low tax effect, the reply given by the Revenue is in
https://www.mhc.tn.gov.in/judis
the affirmative. Therefore, based on such instructions from the Revenue, the
learned Standing Counsel submits that this appeal can be disposed of.
4. Recording the aforesaid submission made by the learned Standing
Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low
tax effect, keeping open the substantial questions of law for adjudication at
appropriate stage. No costs.
(R.S.K.,J.) (C.S.N.,J.)
19.10.2024
NCS : Yes/No
Index : Yes/No
KST
To
The Income Tax Appellate Tribunal
'B' Bench, Chennai.
https://www.mhc.tn.gov.in/judis
R.SURESH KUMAR, J.
AND
C.SARAVANAN, J.
KST
19.10.2024
https://www.mhc.tn.gov.in/judis
