Commissioner of Income Tax vs. Sonarji Jewallery Exports Ltd

Tax Case Appeal No. 70 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.02.2022 CORAM THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD Tax Case Appeal No. 70 of 2022 The Commissioner of Income Tax Chennai .. Appellant Versus Sonarji Jewellery Exports Ltd Chennai .. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 11.11.2002 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai in I.T.A.No.1369/Mds/2002. For Appellant : Mr.J.Narayanaswamy Senior Standing Counsel JUDGMENT (Judgment was delivered by R. MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, calling in question the correctness of the order dated 11.11.2002 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.1369/Mds/2002, relating to the assessment year 1996-1997, by raising the following substantial question of 1/3 https://www.mhc.tn.gov.in/judis Tax Case Appeal No. 70 of 2022 law:- “ Whether in the facts and in the circumstances of the case, the Tribunal was right in holding that the interest derived from the short term deposit of share application money is assessable as business income?” 2. When this matter was taken up for consideration, the learned counsel 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. 3. 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the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial question of law for determination in an appropriate case. No costs.

[R.M.D, J.] [J.S.N.P, J.] 22.02.2022

Internet : Yes

Index : Yes / No 2/3 https://www.mhc.tn.gov.in/judis Tax Case Appeal No. 70 of 2022 dhk R. MAHADEVAN, J. AND J.SATHYA NARAYANA PRASAD, J. dhk To 1. The Income Tax Appellate Tribunal, Madras “A” Bench. 2.The Commissioner of Income Tax (Appeals) - V Chennai 3.Commissioner of Income Tax Chennai. Tax Case Appeal No. 70 of 2022 22.02.2022 3/3 https://www.mhc.tn.gov.in/judis