THE COMMISSIONER OF INCOME T vs. CATERPILLAR POWER INDIA P LTD

T.C.A.No.260 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.260 of 2021 The Commissioner of Income Tax, Chennai. ... Appellant

Versus M/s. Caterpillar Power India (P) Ltd., 7th Floor, International Tech Park, Taramani, Chennai - 600 113. PAN : AAACH 2193N ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 16.02.2017 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.61/Mds/2016. For Appellant : Mr.T.Ravikumar Standing Counsel For Respondent : Mr.S.P.Chidambaram

Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.260 of 2021 JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 16.02.2017 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.61/Mds/2016, relating to the assessment year 2007-08.

2.By order dated 16.04.2021, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the disallowance of payment made towards business management services are to be allowed? (ii) Is not the finding of the Tribunal bad by disallowing the addition made by the AO especially when the assessee had not proved that the said charges were incurred for commercial expediency or for business purposes? (iii) Whether the reasoning and finding of the Tribunal is correct especially when no evidence has been produced by the assessee to discharge the initial burden of proof that has been cast on the assessee to substantiate the claim for deduction?" Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.260 of 2021 3.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 appeal 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. 4.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 an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 23.08.2022

Internet : Yes

Index : Yes / No av Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.260 of 2021 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai. 2. The Commissioner of Income Tax, Chennai. 3. The Deputy Commissioner of Income-tax, Large Taxpayer Unit - 1, Chennai- 600 034. 4. The Commissioner of Income Tax (Appeals)- 1 , Chennai. T.C.A.No.260 of 2021 23.08.2022 Page 4/4 https://www.mhc.tn.gov.in/judis