PRINCIPAL COMMISSIONER OF IN vs. M/S. M.CT.M. GLOBAL INVESTME

TCA/234/2019HC Madras31 October 2022Bench: HONOURABLE MR. JUSTICE S.VAIDYANATHAN5 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Judicature at Madras, in light of the submission made by the learned counsel for the appellant/Revenue concerning CBDT Circular No. 17/2019, held that the appeal, wherein the tax effect was stated to be less than the monetary limit imposed by the circular, is dismissed as withdrawn. The Court explicitly stated that the substantial question of law remains open for determination in appropriate cases. No costs were awarded. The connected Civil Miscellaneous Petition (C.M.P.) was also closed. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The Revenue, Principal Commissioner of Income-tax, Central 4, Chennai, filed a Tax Case Appeal under Section 260A of the Income Tax Act, 1961, against an order dated 21.10.2016 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai. The appeal pertained to assessment year 2005-06 and was filed against M/s. M.Ct.M. Global Investments Pvt Ltd. The appeal was admitted by the High Court of Judicature at Madras. During the proceedings, the Revenue brought to the court's notice CBDT Circular No. 17/2019 dated 08.08.2019, which stipulates that appeals shall not be filed or pursued if the tax effect does not exceed Rs. 1,00,00,000/-. The Revenue submitted that the tax effect in this appeal was below this threshold.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of CBDT Circular No. 17/2019, given that the tax effect is below the prescribed threshold of Rs. 1,00,00,000/-? Assessee's Contention: The judgment does not record any specific contentions made by the assessee regarding the merits of the case. The assessee's counsel was present, but the appeal was disposed of based on the Revenue's submission regarding the tax effect. Revenue's Contention: The Revenue contended that the tax effect in the present appeal is less than the monetary limit stipulated in CBDT Circular No. 17/2019, which mandates that appeals shall not be filed or pursued before the High Court if the tax effect does not exceed Rs. 1,00,00,000/-. Therefore, the appeal should be dismissed as withdrawn.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Tax Case Appeal No. 234 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 31.10.2022 CORAM : THE HONOURABLE MR. JUSTICE S.VAIDYANATHAN AND THE HONOURABLE MR. JUSTICE C.SARAVANAN Tax Case Appeal No.234 of 2019 & C.M.P. No. 6794 of 2019 The Principal Commissioner of Income-tax Central 4, No.121, Mahatma Gandhi Road, Chennai.

.. Appellant Versus M/s. M.Ct.M. Global Investments Pvt Ltd., 761, Anna Salai, Chennai – 600 002. PAN: AAB CM 9738 K

.. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 21.10.2016 in ITA No.1465/Mds/2009 passed by the Income Tax Appellate Tribunal, Madras “A” Bench. For Appellant :: Mr.Karthik Ranganathan For Respondent :: Ms.S. Sreelakshmi Valli 1/5 https://www.mhc.tn.gov.in/judis Tax Case Appeal No. 234 of 2019 J U D G M E N T S.VAIDYANATHAN, J and C.SARAVANAN, J This Tax Case Appeal has been filed by the Appellant / Revenue, calling in question the correctness of the order dated 21.10.2016 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No1465/Mds/2009, relating to the assessment year 2005-06. 2. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 2/5 https://www.mhc.tn.gov.in/judis Tax Case Appeal No. 234 of 2019 3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial question of law for determination in appropriate cases. No costs. Connected C.M.P. is closed. 4. Registry is directed to return the original order, if any enclosed along with this Appeal after retaining a copy of the same in the court bundle. [S.V.N, J.] [C.S.N, J.] 31.10.2022 2/6

Internet : Yes

Index : Yes / No nv To 1. The Income Tax Appellate Tribunal, Chennai “A” Bench. 2.The Assistant Commissioner of Income Tax , Company Circle-IV(3), Chennai 34. 3.The Commissioner of Income Tax (Appeals) - V, Chennai. 3/5 https://www.mhc.tn.gov.in/judis Tax Case Appeal No. 234 of 2019 S . VAIDYANATHAN, J.

AND C.SARAVANAN

, J . nv T.C.A. No. 234 of 2019 31.10.2022 4/5 https://www.mhc.tn.gov.in/judis Tax Case Appeal No. 234 of 2019 5/5 https://www.mhc.tn.gov.in/judis

Recent GST High Court judgments

Search GST case law →