COMMISSIONER OF INCOME TAX vs. SHRIRAM EPC LTD

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TCA/757/2019HC Madras30 October 2019Bench: Hon`ble The ACTING CHIEF JUSTICE4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court, considering the submission made by the learned Senior Standing Counsel for the Revenue regarding CBDT Circular No. 17/2019, which sets a monetary limit of Rs. 1,00,00,000/- for pursuing appeals before the High Court, noted that the tax effect in the instant case was less than this stipulated limit. Consequently, the Court dismissed the appeals filed by the Revenue as withdrawn. The Court explicitly stated that the substantial questions of law were kept open for determination in appropriate cases. No costs were awarded.

What were the facts?

These Tax Case Appeals were filed by the Revenue (Commissioner of Income Tax, Chennai) against the order of the Income Tax Appellate Tribunal, 'C' Bench, Chennai, dated 10.09.2012. The appeals pertained to Assessment Years 2007-08, 2006-07, and 2005-06, concerning the assessee M/s. Shriram EPC Ltd. The appeals challenged the Tribunal's decision to uphold the Commissioner of Income Tax (Appeals) order directing the Assessing Officer to delete disallowances related to depreciation on knowhow and deduction under Section 80IA. During the hearing, the Revenue brought to the Court's notice CBDT Circular No. 17/2019, dated 8th August 2019, which stipulates that appeals shall not be filed or pursued if the tax effect does not exceed Rs. 1,00,00,000/-.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether, under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in upholding the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to delete the disallowance of depreciation on knowhow? 2. Whether, under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in upholding the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to delete the disallowance of deduction under Section 80IA? Contentions of the Revenue: The Revenue, through its learned Senior Standing Counsel, brought to the Court's notice CBDT Circular No. 17/2019. This circular mandates that appeals shall not be filed or pursued before the High Court if the tax effect is less than Rs. 1,00,00,000/-. The Revenue indicated that the tax effect in the present appeals was below this monetary limit. Contentions of the Assessee: No specific contentions were recorded for the assessee in the provided judgment.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80IA

AI-generated summary — verify with the full judgment below

Judgment dt. 30.10.2019 in TC(A) Nos.757, 759 and 764 of 2019 Commissioner of Income Tax v. M/s.Shriram EPC Ltd., IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 30.10.2019 CORAM : THE HON'BLE DR.VINEET KOTHARI, ACTING CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case (Appeal) Nos.757, 759, 764 of 2019 Commissioner of Income Tax Chennai. .. Appellant in all the Appeals v. M/s.Shriram EPC Ltd., Mookambika Complex, 3rd Floor, No.4, Lady Desika Road, Mylapore, Chennai-600 004 .. Respondent in all the Appeals 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 10.09.2012 made in ITA.Nos.897/mds/2012, 896/mds/2012 and 895/mds/2012, respectively. __________ Page 1 of 4 http://www.judis.nic.in Judgment dt. 30.10.2019 in TC(A) Nos.757, 759 and 764 of 2019 Commissioner of Income Tax v. M/s.Shriram EPC Ltd., For Appellant : Mr.J.Narayanaswamy Sr.Standing Counsel COMMON JUDGMENT (Delivered by The Hon'ble Acting Chief Justice) These Tax Case Appeals have been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai, dated 10.09.2012, for the Assessment Years 2007-08, 2006-07 and 2005-06, respectively, by raising the following substantial questions of law: “1.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in upholding the order of the Commissioner of Income Tax (Appeals) direct the Assessing Officer to delete disallowance of depreciation on knowhow? 2.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in upholding the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to delete disallowance of deduction under Section 80IA?” __________ Page 2 of 4 http://www.judis.nic.in Judgment dt. 30.10.2019 in TC(A) Nos.757, 759 and 764 of 2019 Commissioner of Income Tax v. M/s.Shriram EPC Ltd., 2. When the matter is taken up for hearing, the learned Senior Standing Counsel appearing for the Revenue has brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, 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). 3. In the instant case, the tax effect is said to be less than the monetary limit imposed and, therefore, the Appeals filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs.

(V.K.,ACJ.) (C.S.N.,J.) 30.10.2019 Index : No msk THE HON'BLE ACTING CHIEF JUSTICE AND __________ Page 3 of 4 http://www.judis.nic.in Judgment dt. 30.10.2019 in TC(A) Nos.757, 759 and 764 of 2019 Commissioner of Income Tax v. M/s.Shriram EPC Ltd., C.SARAVANAN, J. msk To: 1. The Registrar, Income Tax Appellate Tribunal, 'C' Bench, Chennai. Tax Case (Appeal) Nos.757, 759 and 764 of 2019 30.10.2019 __________ Page 4 of 4 http://www.judis.nic.in

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