Commissioner Of Income Tax vs. POLARIS CONSULTING AND SERVICES PTE. LTD

TCA/41/2025HC Madras12 September 2025Bench: Honourable The CHIEF JUSTICE4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court noted the submission by the Revenue's counsel that the case had a low tax effect. Relying on Circular No.05/2024 and Circular No.09/2024 issued by the CBDT, the Revenue indicated its intention not to proceed with the appeal. Consequently, the High Court held that the appeal stands dismissed. The court also stated that there shall be no order as to costs, and the interim application stands closed. The judgment does not delve into the merits of the ITAT's order or the substantive issues that might have been raised in the appeal, as the appeal was dismissed based on the Revenue's submission regarding low tax effect and the relevant circulars.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (International Taxation), Chennai (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT), Madras “D” Bench, dated 22.12.2023 in IT (TP) A No.5/Chny/2023. The assessee is Polaris Consulting & Services Pte Ltd., Singapore. The appeal was filed under Section 260A of the Income-tax Act, 1961. The High Court heard the counsel for the appellant/Revenue. The counsel for the appellant fairly submitted that the case had a low tax effect.

What were the issues?

1. Whether the appeal, filed by the Revenue, should be proceeded with, given the low tax effect and relevant CBDT Circulars. The Revenue, through its counsel, submitted that in view of Circular No.05/2024 dated 15.03.2024 and Circular No.09/2024 dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, the Revenue does not wish to proceed with the matter. The Revenue stated that the questions of law may be kept open for consideration in an appropriate matter. The judgment does not record any specific arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.41 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12.09.2025 CORAM : THE HONOURABLE MR. MANINDRA MOHAN SHRIVASTAVA, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN T.C.A.No.41 of 2025 and C.M.P.No.3931 of 2025 Commissioner of Income Tax International Taxation, Chennai - 600 034. Appellant Vs Polaris Consulting & Services Pte Ltd., No.3, Changi Business Park Vistas #02-3/4/5 Alzonobel House Foreign Singapore-486 051 Respondent PRAYER

: Appeal filed under Section 260A of the Income-tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “D” Bench, dated 22.12.2023 in IT (TP) A No.5/Chny/2023. ______________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm ) T.C.A.No.41 of 2025 For Appellant: Mr.Dinesh for Mr.Karthik Ranganathan [Through VC] For Respondent: Mr.N.V.Balaji JUDGMENT (Delivered by the Hon'ble Chief Justice) Heard Mr.Dinesh, learned counsel for the appellant/Revenue, who is appearing through video-conferencing. 2. Mr.Dinesh, learned counsel for the appellant, on instructions from Mr.Karthik Ranganathan, learned Senior Standing Counsel, fairly submits that it is a case having low tax effect. Therefore, in view of the Circular No.05/2024 dated 15.03.2024, and Circular No.09/2024, dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India, the appellant/Revenue does not wish to proceed with the matter, though the questions of law may be kept open for consideration in the appropriate matter. ______________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm ) T.C.A.No.41 of 2025 In that view of the matter, the appeal stands dismissed. There shall be no order as to costs. Consequently, interim application stands closed. (MANINDRA MOHAN SHRIVASTAVA, CJ) (G.ARUL MURUGAN,J)

12.09.2025 Index : Yes/No Neutral Citation : Yes/No bbr To: 1. The Assistant Registrar Income Tax Appellate Tribunal Chennai Benches, Chennai. 2. The Joint Commissioner of Income Tax (HQ) and Secretary, Dispute Resolution Panel-2 A Wing, 4th Floor, Kendriya Sadan Koramangala, Bengaluru – 560 034. ______________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm ) T.C.A.No.41 of 2025 THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,J. bbr

T.C.A.No.41 of 2025

12.09.2025 ______________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm )

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