THE COMMISSIONER OF INCOME T vs. M/S.ASHOK LEYLAND LIMITED,

TCA.Nos.142 & 143 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.02.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal Nos.142 & 143 of 2021 and C.M.P.No.2626 of 2021 in T.C.A.No.143 of 2021 The Commissioner of Income Tax, Chennai. ...Appellant in both cases Vs M/s.Ashok Leyland Limited, No.1, Sardar Patel Road, Guindy, Chennai - 600 032. PAN: AAACA4651L ...Respondent in both cases COMMON PRAYER: Appeals under Section 260A of the Income Tax Act, 1961 against the orders dated 20.10.2016 made in ITA.No.311/Mds/2013 and ITA.No.160/Mds/2013 on the file of the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai for the assessment year 2004-05. For Appellant: Mrs.R.Hemalatha 1/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.142 & 143 of 2021 COMMON JUDGMENT (Delivered by

T.S.Sivagnanam,J

) These appeals, filed by the Revenue, are directed against the orders dated 20.10.2016 made in ITA.No.311/Mds/2013 and ITA.No.160/Mds/2013 on the file of the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai (for brevity, the Tribunal) for the assessment year 2004-05. 2. The appellant-Revenue in T.C.A.No.142 of 2021 has raised the following substantial question of law for consideration: "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that write off of shares in the Company which went into liquidation will be treated as a capital loss when there is no transfer involved in such transaction and there is no transferor or transferee?" 3. The appellant-Revenue in T.C.A.No.143 of 2021 has raised the following substantial questions of law for consideration: "1. Whether the Tribunal was justified in holding that the residential buildings are entitled to depreciation at 10% instead of the 5% which 2/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.142 & 143 of 2021 has been prescribed in the Income Tax Rules in Appendix-1? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right and justified in holding that the purchase and sale transaction with Associate Enterprises are to be consolidated with the transfer pricing study when the CUP method requires comparison on transaction to transaction basis only and there is no provisions under the Income Tax Act and the Rules thereunder for consolidating such a method? 3. Whether on the facts and in the circumstances of the case, the Tribunal was correct and justified in holding that the (+) or (-) variance in different transaction with its Associate Enterprises are to be consolidated in Transfer Pricing Analysis?" 4. We have heard Mrs.R.Hemalatha, learned Senior Standing Counsel for the appellant-Revenue. 5. The learned Senior Standing Counsel appearing for the appellant submits that the above appeals are not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High 3/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.142 & 143 of 2021 Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 6. In the light of the said submissions, the above tax case appeals are dismissed on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeals to be heard and decided on merits. No costs. Consequently, connected miscellaneous petition is closed. (T.S.S.,J.) (R.N.M.,J.) 15.02.2021 Index: Yes/No Internet:Yes/No Speaking Judgment/Non speaking Judgment hvk 4/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.142 & 143 of 2021 To 1. The Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai. 2. The Commissioner of Income Tax, Chennai. 5/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.142 & 143 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk T.C.A.Nos.142 & 143 of 2021 and C.M.P.No.2626 of 2021 15.02.2021 6/6 https://www.mhc.tn.gov.in/judis/