The Commissioner of Income Tax vs. M/s.Arun Excello Urban Infrastructure Pvt Ltd

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TCA/196/2022HC Madras16 September 2025Bench: Honourable The CHIEF JUSTICE4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court decided to dismiss the appeal filed by the Revenue. The reasoning for this decision was based on the submission made 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, issued by the CBDT, the Revenue indicated its unwillingness to pursue the matter further. The Court accepted this submission and accordingly dismissed the appeal. The Court explicitly stated that the questions of law would be kept open for consideration in an appropriate matter. No specific findings were made on the merits of the original dispute between the assessee and the Revenue. The operative direction was the dismissal of the appeal, with no order as to costs.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax, Chennai (the Revenue) against an order dated 30.11.2021 passed by the Income Tax Appellate Tribunal ('D' Bench, Chennai). The appeal is against the decision of the ITAT concerning M/s. Arun Excello Urban Infrastructure Pvt Ltd (the assessee). The specific assessment year(s) and the amount in dispute are not explicitly stated in the provided text. The procedural history leading to this High Court appeal involves the Revenue challenging the ITAT's order under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed on the grounds of low tax effect, in light of CBDT Circulars No. 05/2024 and 09/2024? (Question of law). The Revenue, through its learned counsel, submitted that the case has a low tax effect. Consequently, in view of 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, 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. The assessee's contentions are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

TCA No.196 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16.09.2025 CORAM : THE HONOURABLE MR. MANINDRA MOHAN SHRIVASTAVA, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN TCA No.196 of 2022 The Commissioner of Income Tax Chennai. .. Appellant Vs. M/s. Arun Excello Urban Infrastructure Pvt Ltd Bhattad Towers 18, West Cott Road Royapettah, Chennai 600 010 PAN: AAGCA2312Q .. Respondent Prayer : Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 30.11.2021 passed in ITA No.731/CHNY/2020 on the file of Income Tax Appellate Tribunal 'D' Bench, Chennai. For Appellant : Mr.T.Ravikumar Senior Standing Counsel For Respondent : M/s. Vandhana Vyas JUDGMENT ____________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 19/09/2025 06:04:29 pm ) TCA No.196 of 2022 (Judgment of the Court was delivered by the Hon'ble Chief Justice) Heard learned counsel for the appellant/Revenue and learned counsel for the respondent. 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) (G.ARUL MURUGAN,J)

16.09.2025 kpl ____________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 19/09/2025 06:04:29 pm ) TCA No.196 of 2022 To 1. The Assistant Registrar Income Tax Appellate Tribunal 'D' Bench, Chennai. 2. The Commissioner of Income Tax, Chennai.

____________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 19/09/2025 06:04:29 pm ) TCA No.196 of 2022 THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,J. (kpl)

TCA No.196 of 2022

16.09.2025 ____________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 19/09/2025 06:04:29 pm )

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