Principal Commissioner of Income Tax vs. M/s. IL and FS Tamil Nadu Power Company Ltd

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TCA/220/2024HC Madras28 August 2025Bench: Honourable The CHIEF JUSTICE4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted the submission of the Revenue's counsel that the case had a low tax effect. 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 stated that it did not wish to proceed with the matter. The Revenue also indicated that the question of law could be kept open for consideration in an appropriate matter. Consequently, the High Court dismissed the appeal. No order as to costs was made, and the interim application was closed.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Corporate Circle 2(2), Chennai (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT), A Bench, Chennai, in ITA No.1990/Chny/2019. The respondent in the appeal is IL & FS Tamil Nadu Power Company Ltd. (assessee). The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court heard learned counsel for both the appellant (Revenue) and the respondent (assessee). The Revenue's counsel submitted that the case had a low tax effect.

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 No.09/2024? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the Revenue conceded the matter based on low tax effect. The Revenue's counsel submitted that due to the low tax effect and 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 did not wish to proceed with the matter. The Revenue stated that the question of law may 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.220 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.08.2025 CORAM : THE HONOURABLE MR. MANINDRA MOHAN SHRIVASTAVA, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE SUNDER MOHAN TCA No.220 of 2024 and CMP No.21741 of 2024 The Principal Commissioner of Income Tax, Corporate Circle 2(2), Chennai-600 034. Appellant Vs IL & FS Tamil Nadu Power Company Ltd., New No.2, (Old No.21) 4th Floor, KPR Tower, 1st Street, Subba Rao Avenue, College Road, Chennai-600 006 Respondent PRAYER

: Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal A Bench Chennai, in ITA No.1990/Chny/2019, dated 3.8.2022. ______________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/09/2025 08:56:53 pm ) TCA No.220 of 2024 For Appellant: Mr.S.Abubacker Sidhic for Mr.T.Ravikumar Sr. Standing Counsel For Respondent: M/s.Tushar Jarwal Rahul Sateeja Joseph Prabakar JUDGMENT (Delivered by the Hon'ble Chief Justice) Heard learned counsel for the appellant/Revenue and learned 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 question of law may be kept open for consideration in the appropriate matter. 3. In that view of the matter, the appeal stands dismissed. ______________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/09/2025 08:56:53 pm ) TCA No.220 of 2024 There shall be no order as to costs. Consequently, interim application stands closed. (MANINDRA MOHAN SHRIVASTAVA, CJ) (SUNDER MOHAN,J)

28.08.2025 Index : Yes/No Neutral Citation : Yes/No sasi To: 1. The Assistant Registrar Income Tax Appellate Tribunal Chennai. 2. The Commissioner of Income Tax (Appeals)-5, Chennai-600 034. 3. The Deputy Commissioner of Income Tax Corporate Circle-2(2) Chennai. ______________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/09/2025 08:56:53 pm ) TCA No.220 of 2024 THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN,J. (sasi)

TCA No.220 of 2024

28.08.2025 ______________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/09/2025 08:56:53 pm )

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