PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S.INDUS MOBILE DISTRIBUTION PVT LTD

TCA/48/2021HC Madras07 August 2025Bench: Honourable The CHIEF JUSTICE3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court noted the submission made by the learned counsel for the Revenue that the case had a low tax effect. In view of Circular No.05/2024 and Circular No.09/2024, the Revenue expressed its disinclination to pursue the appeal. Consequently, the High Court placed on record the Revenue's submission and dismissed the appeal. The Court stated that the proposed questions of law would be kept open for consideration in an appropriate case. No specific findings were made on the merits of the case, and no amount in dispute was mentioned. The operative direction was the dismissal of the appeal.

What were the facts?

This case involves an appeal filed by the Principal Commissioner of Income Tax (Revenue) against an order dated 18.02.2020 passed by the Income Tax Appellate Tribunal (ITAT), Chennai, in ITA No.967/Chny/2019. The appeal pertains to Assessment Year 2007-08 and concerns M/s Indus Mobile Distribution Pvt Ltd. (assessee). The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue, represented by its counsel, made a submission before the High Court.

What were the issues?

The High Court was to decide the appeal filed under Section 260A of the Income Tax Act, 1961. The specific questions of law were not explicitly stated in the judgment, but the Revenue indicated that they proposed questions of law. The Revenue's contention, as presented by its counsel, was that the case had a low tax effect. Relying on Circular No.05/2024 and Circular No.09/2024 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, the Revenue stated that it did not wish to proceed with the matter, although it requested that the proposed questions of law be kept open for consideration in an appropriate case. No arguments were recorded for the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

TCA No.48 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 07.08.2025 CORAM THE HON'BLE MR.MANINDRA MOHAN SHRIVASTAVA, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE SUNDER MOHAN TCA No.48 of 2021 Principal Commissioner of Income Tax Central-I No.108, Nungambakkam High Road Chennai 600 034 .. Appellant -vs- M/s Indus Mobile Distribution Pvt Ltd., No.281, TTK Road, Alwarpet Chennai 600 018 .. Respondent Appeal filed under Section 260A of the Income Tax Act, 1961, against the order dated 18.02.2020 passed in ITA No.967/Chny/2019 on the file of the Income Tax Appellate Tribunal, “A” Bench, Chennai for the Assessment Year 2007-08. For Appellant : Mr.Rajasekar For Respondent : Sole respondent-Vacated JUDGMENT (Judgment of the Court was made by the Chief Justice) Heard learned counsel for the appellant/Revenue. Page 1 of 3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 11/08/2025 05:38:30 pm ) TCA No.48 of 2021 2. At the outset, learned counsel for the Revenue 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 proposed may be kept open for consideration in appropriate case. 3. Placing on record such submission, the appeal stands dismissed. There shall be no order as to costs. (MANINDRA MOHAN SHRIVASTAVA, CJ.) (SUNDER MOHAN, J.) 07.08.2025 Index : Yes/No Neutral Citation : Yes/No ss To 1. The Income Tax Appellate Tribunal Madras 'A' Bench, Chennai 2. The Principal Commissioner of Income Tax Central-I No.108, Nungambakkam High Road Chennai 600 034 Page 2 of 3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 11/08/2025 05:38:30 pm ) TCA No.48 of 2021 THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN, J. ss TCA No.48 of 2021 07.08.2025 Page 3 of 3 https://www.mhc.tn.gov.in/judis ( Uploaded on: 11/08/2025 05:38:30 pm )

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