The Commissioner Of Income Tax v. M/S Hardy Exploration And

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 08.02.2022 CORAM :

THE HON'BLE MR. JUSTICE R. MAHADEVAN AND THE HON'BLE MR. JUSTICE J.SATHYA NARAYANA PRASAD T.C.A.No.24 of 2012 Commissioner of Income Tax, Chennai.

... Appellant

Versus

M/s.Hardy Exploration and Production (India) Inc.

Floor 5, West Minister Building, 108, Radakrishnan Salai, Chennai - 600 004.

... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Chennai, "A"

Bench, dated 09.06.2011 in I.TA.No.1077/Mds/2010, against the order of the Commissioner of Income Tax(Appeals)-IV, Chennai-34 dated 22/03/2010 made in Appeal No.CIT(A)-IV/CHE/105/09-10, against the order of the Assistant Director of Income Tax, International Taxation, Chennai-34, dated 31/12/2008 made in PAN/GIR No:AAACV2469A for the Assessment year 2006-2007.

For Appellant : Mr.Karthik Ranganathan, Senior Standing Counsel For Respondent :Mr.Subbaraya Aiyar

J U D G M E N T

(Judgment was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 09.06.2011 passed by the Income Tax Appellate Tribunal, Bench 'A', Chennai, in I.T.A.No.1077/Mds/2010, relating to the assessment year 2006-07.

2.By order dated 13.03.2012, this court admitted the aforesaid tax case appeal on the following substantial questions of law:

"(i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the Site Restoration Expenses was an ascertained liability, when the production sharing contract has not outlined any specific modalities for site restoration expenses? (ii) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the site restoration expenditure is an allowable expenditure while computing thee book profit under Section 115JB of the Income Tax Act?" 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 questions of law for determination in an appropriate case. No costs.

Sd/- Assistant Registrar(CS-V) // True Copy // Sub Assistant Registrar vm/kas To

1. The Commissioner of Income Tax , Chennai.

2.The Income Tax Appellate Tribunal, Chennai, "A" Bench.

3. The Commissioner of Income Tax (Appeals)-IV Chennai-34.

4.The Assistant Director of Income Tax, International Taxation, Chennai-34.

T.C.A.No.24 of 2012 GSM(CO) CB(24/02/2022)