PRINCIPAL COMMISSIONER OF vs. KAMARAJAR PORT LTD

T.C.A.Nos.345 to 347 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.345 to 347 of 2017 Principal Commissioner of Income Tax 4, No.121, Mahatma Gandhi Road, Chennai-600 034. .. Appellant in all Appeals -vs- M/s.Kamarajar Port Ltd., C/o.Sundaram & Narayanan, Chartered Accountants, 18, Balaiah Avenue, Luz Church Road, Mylapore, Chennai-600 004. PAN: AAA CE 9013 G .. Respondent in all Appeals Appeals under Section 260A of the Income-tax Act, 1961, against the common order dated 23.11.2016, made in I.T.A.Nos.1140, 1141 & 1142/Mds/2016 on the file of the Income Tax Appellate Tribunal 'B' Bench, Chennai for the assessment years 2007-08, 2010-11 and 2011-12 respectively. For Appellant : Mr.Karthik Ranganathan, (In all Appeals) Senior Standing Counsel assisted by Mr.S.Rajesh, Standing Counsel For Respondent : Mr.N.V.Balaji (In all Appeals) ****** 1/4 http://www.judis.nic.in T.C.A.Nos.345 to 347 of 2017 COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the Revenue under Section 260A of the Income- tax Act, 1961 are directed against the common order dated 23.11.2016, made in I.T.A.Nos.1140, 1141 & 1142/Mds/2016 on the file of the Income Tax Appellate Tribunal 'B' Bench, Chennai for the assessment years 2007-08, 2010-11 and 2011-12 respectively. 2.The appeals have been admitted on 19.07.2017, on the following substantial questions of law:- “(i) Whether the investment made in sister concerns are liable for disallowance under Section 14A of the Income Tax Act, 1961? and (ii) Whether Rule 8D of the Income Tax Rules, 2008 makes an exception to disallowance in the case of investment in sister concerns?” 3.Heard Mr.Karthik Ranganathan, learned Senior Standing Counsel assisted by Mr.S.Rajesh, learned Standing Counsel for the appellant – and Mr.N.V.Balaji, learned counsel for the respondent. 2/4 http://www.judis.nic.in T.C.A.Nos.345 to 347 of 2017 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 this case 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 questions of law 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 the appeals to be heard and decided on merits. No costs. (T.S.S., J.) (V.B.S., J.) 29.08.2019 Index : Yes/No Speaking/Non-Speaking Order abr T.S.Sivagnanam, J. and 3/4 http://www.judis.nic.in T.C.A.Nos.345 to 347 of 2017 V.Bhavani Subbaroyan, J. (abr) To 1.M/s.Kamarajar Port Ltd., C/o.Sundaram & Narayanan, Chartered Accountants, 18, Balaiah Avenue, Luz Church Road, Mylapore, Chennai-600 004. 2.The Income Tax Appellate Tribunal 'B' Bench, Chennai. T.C.A.Nos.345 to 347 of 2017 29.08.2019 4/4 http://www.judis.nic.in