THE COMMISSIONER OF INCOME T vs. M/S ARMCESS ENGINEERS P LTD

TCA.No.573 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 573 of 2015 The Commissioner of Income Tax, Chennai

.. Appellant Versus M/s.Armcess Engineers P. Ltd., No.10/7, IIIrd Main Road, South Phase Ambattur Industrial Estate, Chennai 600 058

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras “D” Bench, Chennai, dated 29.03.2012 passed in I.T.A.No.755/Mds/2008 in respect of assessment year 2004-05 For Appellant : Mr. T. Ravikumar Standing Counsel 1/4 https://www.mhc.tn.gov.in/judis TCA.No.573 of 2015 JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 29.03.2012 passed by the Income Tax Appellate Tribunal Madras “D” Bench, Chennai, in I.T.A.No.755/Mds/2008 for the assessment year 2004-05. 2. On 09.12.2015, this tax case appeal is admitted by this Court on the following substantial questions of law; ' 1. Whether in the absence of any specific provisions in section 115JB with respect to manner of set off of carry forward losses the provisions of Income Tax Act relating to carry forward and set off of losses would apply? 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the exemption u/s.47(v) is available on transfer of capital assets to the holding company especially when all the shares of the subsidiary company were not held by the holding company and as such the conditions prescribed therein were not satisfied? 3. Whether on the facts and circumstances of the case, the Tribunal was right in holding that carry forward of business beyond the period of 8 years while computing book profits is to be allowed which is not the intention of the legislature while dealing with MAT?” 3. When the matter was taken up for consideration, the learned counsel 2/4 https://www.mhc.tn.gov.in/judis TCA.No.573 of 2015 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 appeals 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.] 16.08.2022 msr

Index : Yes / No To 1. The Asst. Commissioner of Income Tax, Company Circle I(1), Chennai. R. MAHADEVAN, J. 3/4 https://www.mhc.tn.gov.in/judis TCA.No.573 of 2015 and MOHAMMED SHAFFIQ, J. msr 2. Commissioner of Income Tax (Appeals) III, Chennai-34. 3. The Income Tax Appellate Tribunal Madras “D” Bench, Chennai T.C.A.No. 573 of 2015 16.08.2022 4/4 https://www.mhc.tn.gov.in/judis