The Principal Commissioner of Income Tax-1 vs. M/S.Eshakti Com Pvt Ltd

PDF · subscribers
TCA/132/2024HC Madras26 August 2025Bench: Honourable The CHIEF JUSTICE4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reason for dismissal was the submission by the Revenue's counsel that the case had a low tax effect. Citing Circular No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024, the Revenue stated its intention not to proceed with the appeal. The Court accepted this submission and accordingly dismissed the appeal. The Court also noted the Revenue's request to keep the questions of law open for consideration in future appropriate matters, but this did not alter the decision to dismiss the present appeal. No order as to costs was made.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 1, Chennai (Revenue) against an order dated 03.08.2023 passed by the Income Tax Appellate Tribunal ('B' Bench, Chennai) in ITA No.528/CHNY/2022. The respondent is M/s. Eshakthi.Com Pvt. Limited. The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court of Judicature at Madras heard the appeal. The Revenue, through its counsel, submitted that the case involved a low tax effect. Consequently, the Revenue did not wish to proceed with the matter, citing Circular No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024.

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? (Question of law) Assessee's Contention: The judgment does not record any specific contentions from the assessee. The assessee is represented by counsel, but their arguments are not detailed. Revenue's Contention: The Revenue, through its counsel, submitted that the case has a low tax effect. In view of Circular No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024, the Revenue does not wish to proceed with the matter. However, the Revenue requested that the questions of law be kept open for consideration in an appropriate matter.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

TCA No.132 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 26.08.2025 CORAM : THE HONOURABLE MR. MANINDRA MOHAN SHRIVASTAVA, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE SUNDER MOHAN TCA No.132 of 2024 Principal Commissioner of Income Tax - 1 Chennai 600 034. .. Appellant Vs. M/s. Eshakthi.Com Pvt. Limited 54/444, Capital Building, 3rd Floor Anna Salai, Chennai 600 018 PAN: AAACE6772C. .. Respondent Prayer : Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 03.08.2023 passed in ITA No.528/CHNY/2022 on the file of Income Tax Appellate Tribunal 'B' Bench, Chennai. For Appellant : Mr.T.Ravikumar Senior Standing Counsel JUDGMENT (Judgment of the Court was delivered by the Hon'ble Chief Justice) Heard learned counsel for the appellant/Revenue and learned ____________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/08/2025 05:40:09 pm ) TCA No.132 of 2024 counsel for the respondent/assessee. 2. At the outset, learned counsel for the Revenue fairly submits that it is a case 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 matter, 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 shall be no order as to costs. (MANINDRA MOHAN SHRIVASTAVA, CJ) (SUNDER MOHAN,J)

26.08.2025 Index : Yes/No Neutral Citation : Yes/No kpl ____________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/08/2025 05:40:09 pm ) TCA No.132 of 2024 To 1. The Assistant Registrar Income Tax Appellate Tribunal “B” Bench, Chennai. 2. The Commissioner of Income Tax, Corporate Ward 2(1) Chennai. 3. The Commissioner of Income Tax (Appeals) Chennai. ____________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/08/2025 05:40:09 pm ) TCA No.132 of 2024 THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN,J. (kpl)

TCA No.132 of 2024

26.08.2025 ____________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 28/08/2025 05:40:09 pm )

Recent GST High Court judgments

Search GST case law →