COMMISSIONER OF INCOME TAX vs. M/S.CHEMFAB WELDERS LTD.,

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TCA/1122/2015HC Madras2026/MHC/413006 October 2026Bench: Honourable Dr.Justice ANITA SUMANTH4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed both Tax Case Appeals filed by the Revenue. The Court noted that the tax effect for Assessment Year 1994-1995 was Rs. 27,25,756/- and for Assessment Year 1995-1996 was Rs. 52,29,442/-. These amounts were found to be below the monetary limit prescribed in Circular No. 9 of 2024 dated 17.09.2024. Consequently, the appeals were dismissed on the basis of this monetary policy. No costs were awarded. The judgment did not delve into the merits of the original appeals before the Tribunal.

What were the facts?

The appeals were filed by the Commissioner of Income Tax, Chennai, against the orders of the Income Tax Appellate Tribunal, 'C' Bench, dated 25.02.2014. These orders pertained to Income Tax Appeal (I.T.A.) No. 1726/Mds/2008 for Assessment Year (A.Y.) 1994-95 and I.T.A. No. 1727/Mds/2008 for A.Y. 1995-96. The assessee is M/s. Chemfab Welders Ltd. (now M/s. Team Company Ltd.). The assessment orders under challenge were dated 28.03.2002. The tax effect for A.Y. 1994-95 was Rs. 27,25,756/-, and for A.Y. 1995-96, it was Rs. 52,29,442/-. The appeals were filed under Section 260-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the Tax Case Appeals filed by the Revenue are to be dismissed on the basis of the monetary limit prescribed in Circular No. 9 of 2024 dated 17.09.2024? The Revenue contended that the appeals should be dismissed as the tax effect in both assessment years falls below the monetary limit stipulated in the relevant circular. The assessee did not record any specific arguments in the judgment.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

2026:MHC:4130 TCA No. 1122 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 06-10-2026 CORAM THE HON'BLE DR.JUSTICE ANITA SUMANTH AND THE HON'BLE MR.JUSTICE K.RAJASEKAR TCA No. 1122 of 2015 CNR:{HCMA010493312015} AND TCA NO. 1131 OF 2015 Commissioner Of Income Tax Chennai. ..Appellant(s) Vs M/s.Chemfab Welders Ltd., (now Known As M/s.Team Company Ltd.) GST Road, Vandalur, Chennai-600 048. PAN:AAACA2615A ..Respondent(s) TCA No. 1131 of 2015 CNR:{HCMA010493922015} Commissioner Of Income Tax Chennai. ..Appellant(s) Vs M/s.Chemfab Welders Ltd., (now Known As M/s.Team Company Ltd.) GST Road, Vandalur, Chennai-600 048. PAN:AAACA2615A ..Respondent(s) __________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 08/10/2026 04:56:42 pm ) 2026:MHC:4130 TCA No. 1122 of 2015 Prayer in TCA.No.1122 of 2015: Tax Case (Appeal) filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, ‘C’ Bench, dated 25.02.2014 passed in I.T.A.No.1726/Mds/2008 for the A.Y. 1994-95. Prayer in TCA.No.1131 of 2015: Tax Case (Appeal) filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, ‘C’ Bench, dated 25.02.2014 passed in I.T.A.No.1727/Mds/2008 for the A.Y. 1995-96. In both TCA’s For Appellant(s): Dr.S.Sathiya Narayanan For Respondent(s): Mr.G.Tarun for Mr.S.Sridhar Common Judgment (Judgment of the Court was delivered by Dr.Anita Sumanth J.) These appeals relate to Assessment Years 1994-1995 and 1995-1996. On perusal of assessment orders both dated 28.03.2002 we find that the tax effect is Rs.27,25,756/- and Rs.52,29,442/-, falling below the monetary limit prescribed in Circular No.9 of 2024 dated 17.09.2024. 2. Hence, these Tax Case (Appeals) are dismissed on the basis of monetary policy. No costs. (A.S.M.,J.) (K.R.S.,J.) 06-10-2026 mpl Index: Yes/No Speaking order Neutral Citation: Yes __________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 08/10/2026 04:56:42 pm ) 2026:MHC:4130 TCA No. 1122 of 2015 To 1.The Income Tax Appellate Tribunal, ‘C’ Bench. __________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 08/10/2026 04:56:42 pm ) 2026:MHC:4130 TCA No. 1122 of 2015 DR.ANITA SUMANTH J. AND K.RAJASEKAR J. MPL TCA No. 1122 of 2015 AND TCA NO. 1131 OF 2015 06-10-2026 __________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 08/10/2026 04:56:42 pm )

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