THE COMMISSIONER OF INCOME T vs. KESARI SANJEY KUNDALIA

TCA.Nos.301 & 302 of 2020 In the High Court of Judicature at Madras Dated : 11.09.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.301 & 302 of 2020 The Commissioner of Income Tax, Chennai ...Appellant in both Appeals Vs Kesai Sanjey Kundalia Old No.114, New NO.36, G.N.Chetty Road, T.Nagar, Chennai 600 017 PAN APDPS7301G ...Respondent in both Appeals COMMON PRAYER: APPEALS under Section 260A of the Income Tax Act, 1961 against the order dated 21.12.2017 made in ITA.Nos.1515 & 1666/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment years 2012-13 & 2013-14. For Appellant in both Appeals: Ms.R.Hemalatha Senior Standing Counsel For Respondent in both Appeals: Mr.R.Sivaraman 1/4 http://www.judis.nic.in TCA.Nos.301 & 302 of 2020 Judgment was delivered by

T.S.Sivagnanam,J

We have heard Ms.R.Hemalatha, learned Senior Standing Counsel appearing for the appellant – Revenue. 2. These appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 21.12.2017 made in ITA.Nos.1515 & 1666/Mds/2017 on the file of the Income Tax Appellate Tribunal, 'B' Bench, Chennai for the assessment years 2012-13 & 2013-14. 3. The appeals are admitted on the following substantial questions of law: T.C.A.No.301/2020: “1.Whether the Tribunal was right in holding that Section 14A disallowances shall be made only when the assessee earns exempt income, which is contrary to the provision of the said Section as well as Rule 8D as they do not provide for any such exception? 2/4 http://www.judis.nic.in TCA.Nos.301 & 302 of 2020 T.C.A.No.302/2020: “1.Whether the Tribunal was right in holding that Section 14A disallowances shall be made only when the assessee earns exempt income, which is contrary to the provision of the said Section as well as Rule 8D as they do not provide for any such exception? 4. The learned Senior Standing Counsel for the appellant submits that the above appeals are not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in these cases is less than the threshold limit. 5. In the light of the said submissions, the above tax case appeals are dismissed on account of the low tax effect. The Substantial Question of Law 3/4 http://www.judis.nic.in TCA.Nos.301 & 302 of 2020 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J sk framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore these appeals to be heard and decided on merits. No costs. (T.S.S., J.) (V.B.S., J.)

11.09.2020 Internet: Yes /No Index : Yes/No To The Income Tax Appellate Tribunal, Chennai 'B' Bench. TCA.Nos.301 & 302 of 2020 4/4 http://www.judis.nic.in