Principal Commisssioner Of Income Tax 3 vs. Sanmar Engineering Services Limited

TCA/304/2024HC Madras2024/MHC/406405 December 2024Bench: Honourable Dr Justice ANITA SUMANTH2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court recorded the submission of the Revenue's Senior Standing Counsel that the Income-Tax Department did not wish to pursue the appeal for Assessment Year 2018-19. This decision was based on the low tax effect, as per Circular No. 9 of 2024 dated 17.09.2024. Consequently, the Court dismissed the tax case appeal as withdrawn. The Court explicitly left the questions of law open to be decided in an appropriate future matter. No costs were awarded.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 3, Chennai, against an order of the Income Tax Appellate Tribunal (ITAT), Madras 'A' Bench, dated December 22, 2023. The appeal pertains to Assessment Year 2018-19 and concerns M/s. Sanmar Engineering Services Limited. The ITAT's order is the subject of challenge. The procedural history involves the filing of this appeal by the Revenue before the High Court under Section 260A of the Income Tax Act, 1961.

What were the issues?

1. Whether the Income Tax Department should be permitted to withdraw the appeal relating to Assessment Year 2018-19, considering the low tax effect, as per Circular No. 9 of 2024 dated 17.09.2024. Contentions: Assessee: No specific contentions are recorded in the judgment. Revenue: The Revenue, through its Senior Standing Counsel, submitted that it does not wish to pursue the appeal due to a low tax effect and sought withdrawal of the same, citing Circular No. 9 of 2024.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

2024:MHC:4064 T.C.(Appeal) No.304 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 05.12.2024 CORAM : THE HONOURABLE DR.JUSTICE ANITA SUMANTH and THE HONOURABLE MR.JUSTICE G. ARUL MURUGAN T.C.(Appeal) No. 304 of 2024 Principal Commissioner of Income Tax - 3 121, Mahatma Gandhi High Road Chennai – 600 034.

.. Appellant vs M/s.Sanmar Engineering Services Limited 9, Cathedral Road, Chennai – 600 086 PAN:AAACS8765K .. Respondent Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961 against order of the Income Tax Appellate Tribunal, Madras 'A' Bench, dated 22.12.2023 in ITA No.568/Chny/2023 for Assessment Year 2018-19. For Appellant :: Mr.J.Narayanasamy Senior Standing Counsel For Respondent :: Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan https://www.mhc.tn.gov.in/judis T.C.(Appeal) No.304 of 2024 DR. ANITA SUMANTH.,J. and G. ARUL MURUGAN.,J. JUDGMENT (Delivered by Dr. ANITA SUMANTH.,J) Mr.J.Narayanasamy, learned Senior Standing Counsel appearing for the appellant/Department would submit that the Income-Tax Department does not wish to pursue the appeal relating to assessment year 2018-19 and seeks withdrawal of the same on account of the low tax effect per Circular bearing No.9 of 2024 dated 17.09.2024. 2. Recording the aforesaid submission, the tax case appeal is dismissed as withdrawn leaving the questions of law open to be decided in an appropriate matter. No costs. [A.S.M., J] [G.A.M., J]

05.12.2024 sl Index:Yes/No Neutral Citation:Yes Speaking order T.C.(A) No.304 of 2024 https://www.mhc.tn.gov.in/judis

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