THE COMMISSIONER OF INCOME vs. M/S. IGARASHI MOTORS INDIA

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TCA/248/2015HC Madras06 March 2026Bench: Honourable Dr Justice G. JAYACHANDRAN3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court, after considering the submissions of the Revenue, acknowledged that the substantial question of law involved in the matter was to be left open to be decided in an appropriate case. The Court found that the appeal could be disposed of in terms of the circular cited by the Revenue, without prejudice to the rights of the Department. Recording this, the Tax Case Appeal was disposed of. The operative direction was the disposal of the appeal as withdrawn, with no costs. The substantial question of law was expressly left undecided.

What were the facts?

The Commissioner of Income Tax, Chennai (the Revenue) filed a Tax Case Appeal under Section 260-A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Madras "A" Branch, dated 17.06.2013. The appeal concerned the assessment year 2008-2009. The disputed tax amount was Rs.1,39,69,890/-. The Revenue sought to withdraw the appeal based on a new Circular No. 9 of 2024, issued on 15.03.2024, which stipulated that appeals with a tax effect of less than Rs.2 crores need not be pursued, superseding an earlier circular.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the revised monetary limits prescribed by Circular No. 9 of 2024, superseding Circular No. 5 of 2024, for appeals with a tax effect below Rs. 2 crores? (Question of law) Assessee's Contention: The Revenue, through its Learned Standing Counsel, submitted that the disputed tax amount of Rs.1,39,69,890/- falls within the monetary limit prescribed by the new Circular No. 9 of 2024, which allows for withdrawal of appeals with a tax effect below Rs. 2 crores. Therefore, the Revenue sought leave to withdraw the present appeal. Revenue's Contention: The Revenue argued that the appeal should be disposed of in terms of the circular, as the tax effect is below the prescribed limit.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.No.248 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 06.03.2026 CORAM THE HONOURABLE DR.JUSTICE G.JAYACHANDRAN AND THE HONOURABLE MR.JUSTICE SHAMIM AHMED T.C.A.No.248 of 2015 T.C.A.No.248 of 2015: The Commissioner of Income Tax, Chennai. … Appellant/Respondent /versus/ M/s.Igarashi Motors India Ltd., Plot No.B-12 to B-15, Phase-II, MEPZ-SEZ, Chennai 600 045. ... Respondent/Appellant Tax Case Appeal has been filed under 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal, Madras “A” Branch, Chennai dated 17.06.2013 passed in I.T.A.2257/Mds/2012. For Petitioner : Mr.T.Ravikumar, Senior Standing Counsel For Respondent : Mr.T.Banusekar JUDGMENT This Tax Case Appeal has been filed by the Department challenging the order passed by the Income Tax Appellate Tribunal dated 17.06.2013. Page Nos.1/3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 17/03/2026 02:02:29 pm ) T.C.A.No.248 of 2015 2. The Learned Standing Counsel appearing for the Appellant/Department would submit that the disputed tax amount for the assessment years 2008-2009 is Rs.1,39,69,890/-. He would further submit that the Government has issued a new Circular No.9 of 2024 dated 15.03.2024 in which if the tax effect is less than Rs.2 crores, superseding the earlier circular No.5 of 2024. Pursuant to the same, the present appeal pending before this Court comes under the prescribed monetary limit of the circular mentioned supra. Hence, he seeks leave of this Court to withdraw the appeal. 3. This Court, after considering the above submissions finds that the substantial question of law involved in this matter is to be left open to be decided in an appropriate case, without prejudice to the rights of the Department, the appeal may be disposed of in terms of the circular cited above. 4. Recording the same, this Tax Case Appeal stands disposed of. No costs. (Dr.G.J. J.,) & (S.S.A. J.,) 06.03.2026 Neutral Citation:Yes/No bsm To, The Income Tax Appellate Tribunal, Madras “A” Branch, Chennai. Page Nos.2/3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 17/03/2026 02:02:29 pm ) T.C.A.No.248 of 2015

G.JAYACHANDRAN, J. AND SHAMIM AHMED,J. bsm T.C.A.No.248 of 2015 06.03.2026 Page Nos.3/3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 17/03/2026 02:02:29 pm )

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