COMMISSIONER OF INCOME TAX vs. M/S WHEEL INDIA LTD

TCA.No.579 of 2015 In the High Court of Judicature at Madras Dated : 16.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.579 of 2015 The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Wheel India Ltd., Chennai-50 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 26.11.2013 made in ITA.No.2136/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2007-08. For Appellant: Mr.T.Ravikumar, SSC & Mrs.R.Hemalatha, SSC For Respondent: Mr.R.Vijayaraghavan for M/s.Subbarayar Aiyer Padmanabhan Judgment was delivered by

T.S.Sivagnanam,J

We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the appellant – Revenue and Mr.R. Vijayaraghavan, learned counsel appearing on behalf of M/s.Subbaraya Aiyer 1/4 http://www.judis.nic.in TCA.No.579 of 2015 Padmanabhan, learned counsel on record 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 26.11.2013 made in ITA.No.2136/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench (for brevity, the Tribunal) for the assessment year 2007-08. 3. The appeal has been admitted on 23.7.2015 on the following substantial questions of law : “1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in entertaining additional grounds on the issue of disallowance of loan arising from sales tax liability, which does not arise out of order of the CIT(A) nor the assessment order? and 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the difference between sales tax loan amount and the amount paid on net present value basis under sales tax deferral scheme of the Maharashtra Government is not a remission of liability under Section 41(1) of the Income Tax Act?" 4. The learned Senior Standing Counsel for the appellant submits that 2/4 http://www.judis.nic.in TCA.No.579 of 2015 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 questions of law framed are 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 make a mention to this Court to restore the appeal to be heard and decided on merits. No costs. 16.6.2020 To The Income Tax Appellate Tribunal, Chennai 'D' Bench. RS 3/4 http://www.judis.nic.in TCA.No.579 of 2015 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS TCA.No.579 of 2015 16.6.2020 4/4 http://www.judis.nic.in