COMMISSIONER OF INCOME TAX vs. M/S. TAKE SOLUTIONS LIMITED

T.C.A.Nos.412 and 413 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos.412 and 413 of 2018 and CMP.No.9483 of 2018 Commissioner of Income Tax, Corporate Circle 3, Chennai. ... Appellant in both TCAs Versus M/s.Take Solutions Limited, 8B, Old No.18B, Adyar Club gate Road, Chennai 600 028, PAN: AABCT 3684 M ... Respondent in both TCAs Appeals preferred under Section 260A of the Income Tax Act, 1961, against the order dated 28.12.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.Nos. 816 and 932/Mds/2016. For Appellant : Mr.M.Swaminathan Senior Standing Counsel M/s.V.Pushpa, Standing Counsel in both TCAs Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.412 and 413 of 2018

COMMON JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) These tax case appeals have been filed by the appellant / Revenue, challenging the common order dated 28.12.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.Nos. 816 and 932/Mds/2016, relating to the assessment year 2011-12, by raising the following substantial questions of law: “(i) Whether the Tribunal was right in holding that investment made in sister concern/subsidiary companies are not liable for disallowance under Section 14A when the provisions of the said section as well as Rule 8D does not provide for any such exception? (ii) Whether the Tribunal was justified in holding that investment in shares of subsidiary companies also yielded only dividend income which is exempt from Income Tax and hence the provisions of section 14A are applicable ignoring the decision of Hon'ble Karnataka High Court in United Breweries Limited - Vs- DCIT (241 Taxman 299) of identical issue?" 2. When the matters were taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.412 and 413 of 2018 Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in these appeals is less than the threshold limit. 3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. Consequently, connected miscellaneous petition is closed. (R.M.D., J.) (M.S.Q., J.) 18.08.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.412 and 413 of 2018 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av 2. The Commissioner of Income Tax, Corporate Circle 3, Chennai.