The Principal Commissioner of Income Tax 3 vs. Sri Bannari Amman Fresh Fruit

TCA/131/2026HC Madras25 September 2026Bench: Honourable The CHIEF JUSTICE4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The decision was based on the submission made by the Revenue's counsel that the cases had a low tax effect. Citing Circular No.05/2024 and Circular No.09/2024, the Revenue stated its intention not to proceed with the matters. The Court accepted this submission and accordingly dismissed the appeal. The questions of law were expressly left open for consideration in an appropriate matter. There was no order as to costs. The operative direction was the dismissal of the appeal.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax 3 (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT), Chennai A Bench, dated 27.02.2026 in ITA No.3702/Chny/2025. The respondent is Sri Bannari Amman Fresh Fruit. The High Court of Judicature at Madras heard the learned counsel for the appellant/Revenue. The Revenue's counsel submitted that the cases had a low tax effect. Consequently, the Revenue did not wish to proceed with the matters, citing Circular No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed on the grounds of low tax effect, as per the CBDT circulars? The Revenue argued that the cases had a low tax effect and, in view of Circular No.05/2024 and Circular No.09/2024, it did not wish to proceed with the appeal. The Revenue also stated that the questions of law may be kept open for consideration in an appropriate matter. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

TCA No.131 of 2026 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.09.2026 CORAM THE HON'BLE MR.SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE G.ARUL MURUGAN TCA No. 131 of 2026 CNR:{HCMA011538982026} The Principal Commissioner of Income Tax 3 121 MG Salai Nungambakkam, Chennai - 600 034 Appellant Vs Sri Bannari Amman Fresh Fruit No.55/66, MG Road, Besant Nagar, Adyar, Chennai 600 090. Respondent Prayer: Appeal filed against the order of the Income Tax Appellate Tribunal Chennai A Bench, dated 27.02.2026 in ITA No.3702/Chny/ 2025. For Appellant Mr.S.Sathyanarayanan Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 06/10/2026 04:41:13 pm ) TCA No.131 of 2026 ORDER (Order of the Court was made by the Hon'ble Chief Justice) Heard learned counsel for the appellant/Revenue. 2. At the outset, learned counsel for the Revenue fairly submits that these cases are having low tax effect. Therefore, in view of the Circular No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India, the appellant/Revenue does not wish to proceed with the matters, though the questions of law may be kept open for consideration in the appropriate matter. 3. In that view of the matter, the appeal stands dismissed. There will be no order as to costs. (SUSHRUT ARVIND DHARMADHIKARI, CJ.) (G.ARUL MURUGAN, J.) 25.09.2026 Index : Yes/No Neutral Citation : Yes/No tar Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 06/10/2026 04:41:13 pm ) TCA No.131 of 2026 To 1. The Principal Commissioner of Income Tax 3 121 MG Salai Nungambakkam, Chennai - 600 034 2. The Income Tax Appellate Tribunal Chennai A Bench Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 06/10/2026 04:41:13 pm ) TCA No.131 of 2026 THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN

, J.

(tar) TCA No.131 of 2026 25.09.2026 Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 06/10/2026 04:41:13 pm )

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