COMMISSIONER OF INCOME TAX vs. TALLBOY STATIONERY PVT LTD

T.C.A.No.790 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.790 of 2016 Commissioner of Income Tax, Corporate Circle - 3 (1), Chennai. ... Appellant

Versus M/s. Tallboy Stationery Private Limited, New No.130, Old No.34, Nelson Manickam Road, Aminjikarai, Chennai 600 029. PAN: AACCT 3483 H ... Respondent

Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 13.04.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.18/Mds/2016. For Appellant : Mr.M.Swaminathan, Senior Standing Counsel Mrs.V.Pushpa, Standing Counsel Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.790 of 2016 For Respondent : Mr.G.Baskar

JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 13.04.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.18/Mds/2016, relating to the assessment year 2006-07, by raising the following substantial questions of law:- “ (i) Whether on the fact and circumstances of the case and in law, the Tribunal was correct in deleting the addition made by the Assessing Office in the hands of the assessee company under Section 2(22)(e)? (ii) Whether Tribunal was correct in law in holding that the addition could not have been made by the Assessing Officer in the hands of the assessee company as it was not a registered share holder of M/s. Chennai Micro Prints Private Limited from which assessee received loan / advance? (iii) Whether on the facts and in the circumstances of the case and in law, the Tribunal correctly interpreted the provisions of section 2(22)(e) in the light of the clarification given by the Board vide Circular No.495 dated 22.09.1987?" Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.790 of 2016 2.When the 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 appeal 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 questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 18.08.2022

Internet : Yes

Index : Yes / No Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.790 of 2016 av R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. 2. The Commissioner of Income Tax, Corporate Circle - 3 (1), Chennai.