THE COMMISSIONER OF INCOME vs. M/S.DAS NETWORKS LIMITED

TCA.Nos.71 and 72 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos. 71 and 72 of 2017 Commissioner of Income-Tax, Chennai .. Appellant in both TCAs Versus M/s.Das Networks Limited, New No.4, (Old No.8), Developed Flats, Industrial Estate, Perungudi, Chennai 600 096. .. Respondent in both TCAs Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal “C” Bench, Chennai, dated 23.06.2016 passed in ITA.Nos.470 and 471/Mds/2015 for the respective assessment years 2008-09 and 2009-10. For Appellant : Mr. T. Ravi Kumar, Standing counsel in both TCAs 1/4 https://www.mhc.tn.gov.in/judis TCA.Nos.71 and 72 of 2017 COMMON JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) These Tax Case Appeals have been filed by the appellant / revenue, questioning the correctness of the order dated 23.06.2016 passed by the Income Tax Appellate Tribunal “C” Bench, Chennai, in ITA.Nos.470 and 471/Mds/2015 for the respective assessment years 2008-09 and 2009-10. 2. On 14.02.2017, these tax case appeals were admitted on the following substantial questions of law; ' 1.Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that deemed dividend could be assessed only in the hands of the share holder in the lending company and not on the person which received such loan or advances? 2. Is not the finding of the Tribunal bad especially when as per the provision of Section 2(22)(e) specifically states “or to any concern in which such shareholder is a member or a partner and in which he has substantial interest?”

2/4 https://www.mhc.tn.gov.in/judis TCA.Nos.71 and 72 of 2017 3. When the matters were 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 these appeals are less than the threshold limit. 4. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. [R.M.D,J.] [M.S.Q., J.] 16.08.2022 msr

Index : Yes / No 3/4 https://www.mhc.tn.gov.in/judis TCA.Nos.71 and 72 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. The Income Tax Officer, Corporate Ward 1 (4), O/o Addl. CIT, Corporate Range – 1, Chennai. 2. The Commissioner of Income Tax (Appeals)-1 Chennai-34 3. The Income Tax Appellate Tribunal Madras “C” Bench, Chennai. 4. Commissioner of Income-Tax, Chennai. T.C.A.Nos. 71 and 72 of 2017 16.08.2022 4/4 https://www.mhc.tn.gov.in/judis