Principal Commissioner of Income Tax vs. L.G. Balakrishnan and Bros Ltd

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TCA/27/2026HC Madras26 March 2026Bench: Honourable The CHIEF JUSTICE3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the appeal to be withdrawn. The Court noted that the learned counsel for the appellant (Principal Commissioner of Income Tax, Coimbatore) sought to withdraw the appeal. The stated reason for withdrawal was that the tax effect involved in the appeal was below Rs.2.00 crore. Consequently, the High Court dismissed the appeal as withdrawn. There was no decision on the merits of the case. The operative direction was to dismiss the appeal as withdrawn, with no order as to costs. No issues were expressly left undecided as the appeal was disposed of on a procedural ground.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Coimbatore (Revenue) against an order dated 03.09.2025 passed by the Income Tax Appellate Tribunal, Madras ‘D’ Bench, in IT(TP)A No.74/Chny/2024. The respondent in the appeal is L.G. Balakrishnan and Bros Ltd. The appeal was preferred under Section 260A of the Income Tax Act, 1961. The procedural history leading to this appeal involves the assessee filing an appeal before the ITAT, which then passed an order that is now under challenge before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect involved? (Question of law) Assessee's contention: The learned counsel for the appellant (Revenue) sought to withdraw the appeal. The reason cited for withdrawal was that the tax effect involved in the appeal was below Rs.2.00 crore. The judgment does not record any specific arguments from the respondent (assessee) on the merits of the case or the maintainability of the appeal, other than implicitly agreeing to the withdrawal. Revenue's contention: The Revenue, through its counsel, sought to withdraw the appeal due to the tax effect being below the threshold of Rs.2.00 crore.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.27 of 2026 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 26.03.2026 CORAM : THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN T.C.A.No.27 of 2026 Principal Commissioner of Income Tax Coimbatore. Appellant(s) Vs L.G. Balakrishnan and Bros Ltd. 6/16/13, Krishnarayapuram Road Ganapathy Post Coimbatore – 641 006. Respondent(s) Prayer: Appeal under Section 260A of the Income Tax Act, 1961, against the order dated 03.09.2025 passed in IT(TP)A No.74/Chny/2024 on the file of Income Tax Appellate Tribunal Madras ‘D’ Bench.

For Appellant(s): Mr. P.E.R. Mangala Suvigaran Junior Standing Counsel

__________ Page 1 of 3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/03/2026 03:35:27 pm ) T.C.A.No.27 of 2026 JUDGMENT (Judgment of the Court was delivered by the Hon'ble Chief Justice) Learned counsel for appellant seeks to withdraw the appeal as the tax effect involved in this appeal is below Rs.2.00 crore. 2. Appeal is dismissed as withdrawn. There shall be no order as to costs. (SUSHRUT ARVIND DHARMADHIKARI,CJ) (G.ARUL MURUGAN,J)

26.03.2026 Index : Yes/No Neutral Citation : Yes/No kpl

__________ Page 2 of 3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/03/2026 03:35:27 pm ) T.C.A.No.27 of 2026 THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,J. (kpl) T.C.A.No.27 of 2026

26.03.2026 __________ Page 3 of 3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/03/2026 03:35:27 pm )

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