COMMISSIONER OF INCOME TAX vs. S.P.APPARELS LTD

TCA/573/2021HC Madras2024/MHC/409710 December 2024Bench: Honourable Dr Justice ANITA SUMANTH2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court recorded the submission of the learned Senior Standing Counsel for the Revenue that the Income-Tax Department did not wish to pursue the appeal relating to Assessment Year 2008-09 and sought withdrawal of the same on account of the low tax effect, as per Circular No. 9 of 2024 dated 17.09.2024. Accordingly, the Tax Case (Appeal) was dismissed as withdrawn. The court explicitly stated that the questions of law were left open to be decided in an appropriate matter. No costs were awarded. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The Revenue, the Commissioner of Income Tax, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Madras 'C' Bench, dated 17.04.2015. This appeal pertained to Assessment Year 2008-09 and concerned the assessee, M/s. S.P. Apparels Ltd. The High Court of Judicature at Madras was hearing the appeal. The Revenue's counsel informed the court that the Department did not wish to pursue the appeal for the specified assessment year and sought its withdrawal. The reason cited for withdrawal was the low tax effect, in accordance with Circular No. 9 of 2024 dated 17.09.2024.

What were the issues?

1. Whether the Revenue's appeal against the ITAT order for Assessment Year 2008-09 should be dismissed as withdrawn on account of low tax effect, as per Circular No. 9 of 2024? (Question of procedure/policy based on administrative instructions) The Revenue argued that it did not wish to pursue the appeal and sought its withdrawal due to the low tax effect, citing Circular No. 9 of 2024. The judgment does not record any specific arguments from the assessee on this procedural matter.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

2024:MHC:4097 T.C.(Appeal) No.573 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 10.12.2024 CORAM : THE HONOURABLE DR.JUSTICE ANITA SUMANTH and THE HONOURABLE MR.JUSTICE G. ARUL MURUGAN T.C.(Appeal) No. 573 of 2021 Commissioner of Income Tax No.63, Race Course Road, Coimbatore. .. Appellant vs M/s.S.P.Apparels Ltd., 39-A Extension Street, Kaikattipudur, Avinashi – 641 654 PAN:AAJ CS 4031 P .. Respondent Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961 against order of the Income Tax Appellate Tribunal, Madras 'C' Bench, dated 17.04.2015 in ITA No.1327/Mds/2014 for Assessment Year 2008-09. For Appellant :: Mr.Karthik Ranganathan Senior Standing Counsel For Respondent :: Mr.N.V.Balaji JUDGMENT (Delivered by Dr. ANITA SUMANTH.,J) Mr.Karthik Ranganathan, learned Senior Standing Counsel would request that T.C.(A)No.573 of 2021 relating to assessment year 2008-09 be listed today as it is hit by low tax effect. DR. ANITA SUMANTH.,J. 1 https://www.mhc.tn.gov.in/judis T.C.(Appeal) No.573 of 2021 and G. ARUL MURUGAN.,J. 2. The Department appeal has been filed in the case of S.P.Apparels Ltd., and other appeals in respect of the same assessee are listed today. Hence, T.C.(A)No.573 of 2021 is listed under a special list today. 3. Mr.Karthik Ranganathan would submit that the Income-Tax Department does not wish to pursue the appeal relating to assessment year 2008-09 and seeks withdrawal of the same on account of the low tax effect per Circular bearing No.9 of 2024 dated 17.09.2024. 4. Recording the aforesaid submission, the Tax Case (Appeal) is dismissed as withdrawn leaving the questions of law open to be decided in an appropriate matter. No costs. [A.S.M., J] [G.A.M., J]

10.12.2024 sl Index:Yes/No Neutral Citation:Yes Speaking order T.C.(A) No.573 of 2021 2 https://www.mhc.tn.gov.in/judis

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