PRINCIPAL COMMISSIONER OF vs. INDOWIND ENERGY LTD

TCA.No.556 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 05.01.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.556 of 2018 Principal Commissioner of Income Tax 2, No.121, Mahatma Gandhi Road, Chennai - 600 034. ...Appellant Vs M/s.Indowind Energy Ltd., Kothari Buildings, IV Floor, 114, Nungambakkam High Road, Chennai - 600 034. PAN: AAACI1806M ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 25.10.2016 made in ITA.No.937/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year 2008-09. For Appellant: Mr.T.R.Senthil Kumar Senior Standing Counsel For Respondent: Mr.A.S.Sriraman 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.556 of 2018 JUDGMENT (Delivered by

T.S.Sivagnanam,J

) We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the Appellant – Revenue and Mr.A.S.Sriraman, learned counsel appearing for the respondent. 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act), is directed against the order dated 25.10.2016 made in ITA.No.937/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench (for brevity, the Tribunal) for the assessment year 2008-09. 3. The appeal was admitted on 28.08.2018 on the following substantial question of law: “Whether in the facts and circumstances of the case and in law, the ITAT was correct in allowing the bad debt written off on account of advance made to M/s.Wipro Finance Ltd. when the assessee is not into the business of real estate?" 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.556 of 2018 4. The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S.,J.) (R.N.M.,J.) 05.01.2021 Index: Yes/No Internet:Yes/No Speaking Judgment/Non speaking Judgment hvk 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.556 of 2018 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk To 1. The Income Tax Appellate Tribunal, Madras 'B' Bench. 2. Principal Commissioner of Income Tax 2, No.121, Mahatma Gandhi Road, Chennai - 600 034. TCA.No.556 of 2018 05.01.2021 4/4 https://www.mhc.tn.gov.in/judis/