COMMISSIONER OF INCOME TAX-I vs. M/S.WEST ASIA MARITIME LTD.,

T.C.A.No.420 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 30.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.420 of 2018 Commissioner of Income Tax, Corporate Circle - 3 (2), Chennai. ... Appellant Versus M/s. West Asia Maritime Limited, 6th Floor, Buhari Towers, 4, Moores Road, Chennai 600 006. PAN: AAACW 1023 E ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 15.03.2017 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.1938/MDS/2016.

For Appellant : Mr.M.Swaminathan, Senior Standing Counsel Mrs.V.Pushpa, Standing Counsel For Respondent : Mr.G.Baskar Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.420 of 2018

JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 15.03.2017 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.1938/Mds/2016, relating to the assessment year 2009-10. 2.By order dated 13.08.2018, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether the Tribunal was right in holding that the assessee is entitled to Tonnage Tax Scheme under Chapter XIIG of the Income Tax Act, 1961, by holding that the ship "M V Gem of Ennore" was a qualifying ship for enjoying the benefit of tonnage tax scheme? (ii) Whether the Tribunal was right in holding that the assessee ship "M V Gem" of Ennore fell within the definition of qualifying ship given under Section 115VD of the Income Tax Act and the assessee was entitled to benefit of tonnage scheme provided under chapter XIIG which is contrary to the plain meaning of clause (i) of Section 115VD? and (iii) Whether the Tribunal was right in holding that provision of Section 14A is not applicable to the assessee since the assessee is enjoying the benefit of Tonnage tax scheme?" Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.420 of 2018 3.When the matter was 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 Taxes, wherein, it is stipulated that appeal 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 this appeal is less than the threshold limit. 4.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 30.08.2022

Internet : Yes

Index : Yes / No av Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.420 of 2018 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “B” Bench, Chennai. 2. The Commissioner of Income Tax, Corporate Circle - 3 (2), Chennai. 3. The Assistant Commissioner of Income-tax, Corporate Circle - 3(2), Chennai 600 034. 4. The Commissioner of Income Tax (Appeals)-11, Chennai.

T.C.A.No.420 of 2018 Page 4/5 https://www.mhc.tn.gov.in/judis T.C.A.No.420 of 2018 30.08.2022 (1/2) Page 5/5 https://www.mhc.tn.gov.in/judis