PRINCIPAL COMMISSIONER OF vs. M/S SAKTHI FINANCE LTD

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TCA/694/2017HC Madras2026/MHC/423312 October 2026Bench: Honourable Dr.Justice ANITA SUMANTH2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court recorded the submission of the Revenue's Senior Standing Counsel that the Income-Tax Department did not wish to pursue the Tax Case (Appeal) for assessment year 2009-2010 and sought withdrawal of the same due to low tax effect, as per Circular No.9 of 2024. Accordingly, the Court dismissed the Tax Case (Appeal) as withdrawn. The judgment explicitly stated that the questions of law were left open to be decided in an appropriate matter. No costs were awarded.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1, Coimbatore (the Revenue) against an order of the Income Tax Appellate Tribunal, Madras ‘D’ Bench, dated 01.05.2017 in ITA No.197/Mds/2017. The appeal concerned assessment year 2009-2010 and was filed under Section 260-A of the Income Tax Act, 1961. The respondent in the appeal was M/s Sakthi Finance Ltd. The High Court of Judicature at Madras heard the appeal.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed as withdrawn on account of low tax effect for assessment year 2009-2010. Contentions: Assessee: No specific contentions are recorded in the judgment. Revenue: The Revenue, through its learned Senior Standing Counsel, submitted that it did not wish to pursue the Tax Case (Appeal) for assessment year 2009-2010 and sought withdrawal of the same. This request was based on Circular No.9 of 2024 dated 17.09.2024, citing low tax effect.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

2026:MHC:4233 TCA.No.694 of 2017 __________ Page 1 of 2 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12-10-2026 CORAM THE HON'BLE DR.JUSTICE ANITA SUMANTH AND THE HON'BLE MR.JUSTICE K.RAJASEKAR TCA.No.694 of 2017 CNR: {HCMA012019192017} The Principal Commissioner of Income Tax-1, No.63, Race Course Road, Coimbatore. ..Appellant Vs M/s Sakthi Finance Ltd., 484, Kamarajar Road, Uppilipalayam, Coimbatore. ..Respondent Prayer: Tax Case Appeal filed under Section 260-A of Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal Madras ‘D’ Bench dated 01.05.2017 in ITA No.197/Mds/2017. For Appellant: Mr.Prabhu Mukunth Arunkumar Senior Standing Counsel For Respondent: Mr.Vikram Vijayaraghavan for Mr.Subbaraya Aiyar Padmanabhan https://www.mhc.tn.gov.in/judis ( Uploaded on: 15/10/2026 04:22:47 pm ) 2026:MHC:4233 TCA.No.694 of 2017 __________ Page 2 of 2 DR.ANITA SUMANTH, J. AND K.RAJASEKAR, J. JUDGMENT (Delivered by Dr.Anita Sumanth, J.) Mr.Prabhu Mukunth Arunkumar, learned Senior Standing Counsel appearing for the appellant/Department, would submit that the Income-Tax Department does not wish to pursue the Tax Case (Appeal) qua assessment year 2009-2010 and seeks withdrawal of the same on account of 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. No costs. (A.S.M.,J.) (K.R.S.,J.) 12-10-2026 Index: Yes/No Speaking order Neutral Citation: Yes hvk TCA.No.694 of 2017 https://www.mhc.tn.gov.in/judis ( Uploaded on: 15/10/2026 04:22:47 pm )

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