Commissioner of Income Tax vs. M/s.SCM Garments (P) Ltd.

TCA/671/2016HC Madras26 November 2024Bench: Honourable Dr Justice ANITA SUMANTH2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court recorded the submission made by the learned Senior Standing Counsel for the appellant/Department that the Income-Tax Department does not wish to pursue the appeal for assessment year 2010-11. The withdrawal was sought on account of the low tax effect, as per Circular No. 9 of 2024 dated 17.09.2024. Accordingly, the Court dismissed the tax case (appeal) as withdrawn. The Court explicitly stated that the questions of law remain open to be decided in an appropriate matter. No decision was made on the merits of the case.

What were the facts?

The Commissioner of Income Tax (Appellant) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 27.02.2015 passed by the Income Tax Appellate Tribunal ('C' Bench) in I.T.A.No.2275/Mds/2014. The appeal pertains to assessment year 2010-11 and concerns M/s. SCM Garments (P) Ltd. (Respondent). The Department, represented by its learned Senior Standing Counsel, informed the High Court that it did not wish to pursue the appeal for the specified assessment year. This decision was based on Circular No. 9 of 2024, dated 17.09.2024, concerning the low tax effect.

What were the issues?

1. Whether the appeal filed by the Revenue against the order of the Income Tax Appellate Tribunal for assessment year 2010-11 should be dismissed as withdrawn on the grounds of low tax effect, as per departmental circulars. Contentions: Assessee: No specific contentions are recorded in the judgment as the appeal was withdrawn by the Revenue. Revenue: The Revenue, through its learned Senior Standing Counsel, submitted that it does not wish to pursue the appeal for assessment year 2010-11 and seeks withdrawal of the same. This request is based on Circular No. 9 of 2024 dated 17.09.2024, which pertains to low tax effect.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

T.C.(A)No.671 of 2016

I.T.A.No.2275/Mds/2014

Read from the judgment's own cause title. This page is filed under one of them.

T.C.(A)No.671 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 26.11.2024 CORAM : THE HONOURABLE DR.JUSTICE ANITA SUMANTH and THE HONOURABLE MR.JUSTICE G. ARUL MURUGAN T.C.(A)No.671 of 2016 Commissioner of Income Tax, No.63, Race Course Road, Coimbatore – 641 018. .... Appellant vs M/s.SCM Garments (P) Ltd. No.57, V.O.C. Nagar (South), Valayankadu, Tirupur – 641 603. PAN:AAJ CS 7850 A .... Respondent Prayer : Appeal filed under Section 260A of the Income Tax Act, 1961 against order dated 27.02.2015 made in I.T.A.No.2275/Mds/2014 on the file of the Income Tax Appellate Tribunal 'C' Bench in respect of assessment year 2010-11. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For Respondent : Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan 1/2 https://www.mhc.tn.gov.in/judis T.C.(A)No.671 of 2016 Dr.ANITA SUMANTH,J. AND G.ARUL MURUGAN,J. JUDGMENT (Delivered by Dr. ANITA SUMANTH.,J) This appeal is directed to be listed today under special list as Mr.Karthik Ranganathan, learned Senior Standing Counsel, appearing for the appellant/Department would submit that the Income-Tax Department does not wish to pursue this appeal qua assessment year 2010-11 and seeks withdrawal of the same on account of the low tax effect per Circular bearing No.9 of 2024 dated 17.09.2024. 2. Recording the aforesaid submission, this tax case (appeal) is dismissed as withdrawn leaving the questions of law open to be decided in an appropriate matter. [A.S.M., J] [G.A.M., J] sl

26.11.2024 Index:Yes/No Neutral Citation:Yes/No Speaking order/Non-speaking order T.C.(A)No.671 of 2016 2/2 https://www.mhc.tn.gov.in/judis

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