Commissioner of Income Tax vs. Susee Authomative Pvt.Ltd

TCA/52/2024HC Madras12 September 2025Bench: Honourable The CHIEF JUSTICE4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that since the Revenue, through its counsel, submitted that the case has a low tax effect and, in view of Circular No.05/2024 and Circular No.09/2024, it did not wish to proceed with the matter, the appeal stands dismissed. The Court noted the Revenue's submission that the questions of law could be kept open for consideration in an appropriate matter. The operative direction was that the appeal stands dismissed with no order as to costs. No specific findings were made on the merits of the case, as the dismissal was based on the Revenue's decision not to press the appeal due to low tax effect.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Madurai (Revenue) against the order of the Income Tax Appellate Tribunal, Madras “B” Bench, dated 31.7.2023 in ITA No.832/Chny/2020. The respondent is Susee Automative Private Limited. The appeal was filed under Section 260A of the Income-tax Act, 1961. The Revenue, through its 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 Central Board of Direct Taxes, the Revenue did not wish to proceed with the matter. The High Court noted that the questions of law could be kept open for consideration in an appropriate matter.

What were the issues?

1. Whether the appeal filed by the Revenue is to be dismissed on the ground of low tax effect, as per the CBDT circulars? (Question of law) Contentions: Assessee: No specific contentions are recorded in the judgment. Revenue: The Revenue, through its counsel, submitted that the case has a low tax effect and, in view of Circular No.05/2024 and Circular No.09/2024, it does not wish to proceed with the matter. The Revenue also stated that the questions of law may be kept open for consideration in an appropriate matter.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.52 of 2024 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.52 of 2024 The Commissioner of Income Tax Madurai Appellant Vs Susee Automative Private Limited No.25, Tamilsangam Road Madurai-625 001 Respondent PRAYER

: Appeal filed under Section 260A of the Income-tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “B” Bench, dated 31.7.2023 in ITA No.832/Chny/2020. For Appellant: M/s.V.Mahalingam P.E.R.Mangala Suvigaran Standing Counsel For Respondent: Mr.T.Vasudevan ______________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm ) T.C.A.No.52 of 2024 JUDGMENT (Delivered by the Hon'ble Chief Justice) Heard learned counsel for the appellant/Revenue and learned counsel for the respondent/Assessee. 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 may be kept open for consideration in the appropriate matter. 3. In that view of the matter, the appeal stands dismissed. There shall be no order as to costs. (MANINDRA MOHAN SHRIVASTAVA, CJ) (G.ARUL MURUGAN,J)

12.09.2025 Index : Yes/No Neutral Citation : Yes/No bbr ______________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm ) T.C.A.No.52 of 2024 To: 1. The Assistant Registrar Income Tax Appellate Tribunal “B” Bench, Chennai. 2. The Commissioner of Income Tax (Appeals), Madurai 3. The Income Tax Officer, Corporate Ward-3, Madurai. ______________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 16/09/2025 04:41:10 pm ) T.C.A.No.52 of 2024 THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,J. bbr

T.C.A.No.52 of 2024

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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