PRINCIPALCOMMISSIONER OF INC vs. M/S.INDIA CEMENTS CAPITAL LTD

TCA.No.225 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.3.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.225 of 2021

The Principal Commissioner of Income Tax, Corporate Circle 2(2), Chennai-34 ...Appellant Vs M/s.India Cements Capital Ltd., Chennai-2 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 01.3.2019 passed by the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai made in I.T.A.No.2563/Chny/2018 for the assessment year 2013-14. For Appellant: Mr.Karthik Ranganathan, SC For Respondent : Mr.R.Vijayaraghavan Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the 1/4 http://www.judis.nic.in TCA.No.225 of 2021 order dated 01.3.2019 made in I.T.A.No.2563/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench ('the Tribunal' for brevity) for the assessment year 2013-14. 2. The Revenue has filed this appeal by raising the following substantial question of law : “Whether,

the

facts

and circumstances of the case and in law, the Tribunal was correct in directing the AO to restrict the disallowance to the extent of exempted income earned by the assessee without appreciating the CBDT circular No.5/ 2014 wherein it is clarified that disallowance under Section 14A read Rule 8D has to be made even if the tax payer in a particular year not earned any exempt income ?” 3. We have heard Mr.Karthik Ranganathan, learned Standing Counsel

appearing

for

the

appellant/Revenue

and Mr.R.Vijayaraghavan, learned counsel accepting notice for the respondent/assessee. 4. It is fairly submitted by the learned Standing Counsel appearing for the appellant/Revenue that the substantial question of law raised in this appeal has been decided against the Revenue (i) in the decision of the Division Bench of this Court, to which, one of us (TSSJ) was a party, in the case of CIT Vs. M/s.Tidel Park Ltd. 2/4 http://www.judis.nic.in TCA.No.225 of 2021 [TCA.Nos.732 and 733 of 2018 dated 07.7.2020]; and (ii) in the decision of the Hon'ble Division Bench of this Court in the case of Marg Ltd. Vs. CIT [reported in (2020) 120 Taxmann.com 84]. 5. Following the same, the above tax case appeal is dismissed and the substantial question of law raised is answered against the Revenue. No costs. 22.3.2021 To The Income Tax Appellate Tribunal, 'D' Bench, Chennai. RS 3/4 http://www.judis.nic.in TCA.No.225 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS TCA.No.225 of 2021 22.3.2021 4/4 http://www.judis.nic.in