COMMISSIONER OF INCOME TAX vs. SAMALPATTI POWER COMPANY PVT

T.C.A.No.115 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 25.08.2022 CORAM THE HON'BLE Mr. JUSTICE R. MAHADEVAN AND THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal No.115 of 2021 The Commissioner of Income Tax Chennai .. Appellant Vs. Samalpatti Power Company Pvt. Ltd. “Srayas Virat” No.14, I Floor 3rd Cross Street, R.A.Puram Chennai 600 028 PAN : AAA DCS 1893 D .. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 26.06.2019 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in I.T.A.No.1593/Chny/2018. For Appellant : Mr.J.Narayanaswamy

Standing Counsel For Respondent : Mr.N.V.Balaji 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.115 of 2021 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, calling in question the correctness of the order dated 26.06.2019 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in I.T.A.No.1593/Chny/2018, relating to the assessment year 2013-14. 2. By order dated 01.03.2021, this Court admitted the aforesaid tax case appeal on the following substantial question of law : “Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenditure incurred in earning the exempt income which was already excluded in the computation u/s 14A had to be excluded in the computation of book profits u/s 115JB even though Explanation 1(f) specifically provides for such exclusion?” 3. When the matter was taken up for consideration, the learned Standing 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 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.115 of 2021 this appeal is less than the threshold limit. 4. In the light of the aforesaid submissions made by the learned Standing 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the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial question of law for determination in an appropriate case.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.] 25.08.2022 Internet : Yes gya To 1.The Deputy Commissioner of Income Tax Corporate Circle 6(1), Chennai 2.The Commissioner of Income Tax (Appeals)-15 Chennai 3.The Income Tax Appellate Tribunal 'B' Bench, Chennai 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.115 of 2021 R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. gya Tax Case Appeal No.115 of 2021 25.08.2022

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