Commissioner Of Income v. M/S Tvs Motors Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 19.8.2019 CORAM :

THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.738 OF 2009 The Commissioner of Income Tax, Chennai ...Appellant/Appellant Vs M/s.TVS Motors Limited, Chennai-6.

...Respondent/Respodent

APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 19.9.2008 made in ITA.No.1958/Mds/2006 on the file of the Income Tax Appellate Tribunal 'C' Bench for the assessment year 1998-99.

For Appellant :

Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SC For Respondent :

Mr.R.Venkata Narayanan for M/s.Subbaraya Aiyer Padmanabhan Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.M.Swaminathan learned Senior Standing Counsel, assisted by Ms.V.Pushpa, Standing Counsel appearing for the appellant - Revenue and Mr.R.Venkata Narayanan, learned counsel for the respondent - assessee.

2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 19.9.2008 made in ITA.No. 1958/Mds/2006 on the file of the Income Tax Appellate Tribunal 'C' Bench for the assessment year 1998-99.

3. The appeal was admitted on 04.8.2009 on the following substantial question of law :

https://hcservices.ecourts.gov.in/hcservices/

"Whether, on the facts and circumstances of the case, the Tribunal was right in law in deleting the disallowance under Section 40(a)(i) made by the Assessing Officer without going into the issue of the nature of payment and its taxability in India ?"

4. The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit.

5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs.

Sd/- Assistant Registrar(AD I) MDU //True Copy// Sub Assistant Registrar RS To

1. The Income Tax Appellate Tribunal, Chennai 'C' Bench.

2. The Commissioner of Income Tax, Chennai.

+1cc to M/s.Subbaraya Aiyar Padmanabhan, Advocate, S.R.No.70482 +1cc to Mr.M.Swaminathan, Advocate, S.R.No.70411 TCA.No.738 of 2009 BS(CO) KKV/17/06/2020 https://hcservices.ecourts.gov.in/hcservices/