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

TCA/49/2021HC 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 has a low tax effect. In light of Circular No.05/2024 and Circular No.09/2024, the Revenue expressed its unwillingness to proceed with the appeal. The Court acknowledged this submission and, based on it, dismissed the appeal. The Court explicitly stated that the questions of law proposed in the appeal would be kept open for consideration in an appropriate case. No specific findings were made on the merits of the ITAT's order, as the appeal was disposed of on the basis of the Revenue's submission regarding low tax effect and the relevant circulars. 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), Madras 'A' Bench, Chennai. The appeal pertains to Assessment Year 2008-09 and challenges the ITAT's decision in ITA No.968/Chny/2019. The assessee is M/s Indus Mobile Distribution Pvt Ltd. The appeal was filed under Section 260A of the Income Tax Act, 1961. The High Court heard the learned counsel for the appellant/Revenue.

What were the issues?

1. Whether the appeal, as presented by the Revenue, should be proceeded with, considering the proposed questions of law and the tax effect. The Revenue, through its learned counsel, submitted that the case has a low tax effect. Consequently, 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 pursue the matter further. However, the Revenue requested that the questions of law proposed in the appeal be kept open for consideration in an appropriate future case. 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

TCA No.49 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.49 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.968/Chny/2019 on the file of the Income Tax Appellate Tribunal, Madras “A” Bench, Chennai for the Assessment Year 2008-09. 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.49 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.49 of 2021 THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN, J. ss TCA No.49 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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