COMMISSIONER OF INCOME TAX vs. SHRIRAM PROPRERTIES PVT LTD

T.C.A.No.861 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.861 of 2019 Commissioner of Income Tax, Chennai ... Appellant Vs Shriram Properties Pvt, Ltd., Greams Dugar, 4th & 5th Floor, 149, Greams Road, Chennai 600 006. ... Respondent PRAYER : Appeal under Section 260A of Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “D” Bench, dated 08.07.2013 in ITA.No.1414/Mds/2012. For Appellant :Mr.J.Narayanaswamy Senior standing counsel for Mr.N.V.Balaji 1/6 http://www.judis.nic.in T.C.A.No.861 of 2019 J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This Tax Case Appeal has been preferred by the Revenue against the order dated 08.07.2013 passed in ITA.No.1414/Mds/2012 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2008-09. 2.The Assessment Officer rejected the claim of the assessee for deduction under Section 80-IB of the Income Tax Act, 1961 (hereinafter referred to as the Act) and also claim for addition under Section 14A read with Rule 8D of the Income Tax Act. The said order on appeal was confirmed by the CIT(A). The order of the CIT(A) was challenged before the Tribunal by the assessee which accepted the contention of the assessee and allowed it. Against the order of the Appellate Tribunal only, present appeal has been filed. 3.The appeal is admitted on the following substantial questions of law : 2/6 http://www.judis.nic.in T.C.A.No.861 of 2019 “1.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in allowing the deduction u/s.80IB, when the loss incurred by one unit was not set off against the profit earned by another unit? 2.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in deleting the disallowance under Section 14A of the Income Tax Act read with rule 8D of the Income Tax Rules?" 4.Mr.J.Narayanaswamy, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect in this case is less than Rs.1 crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 crore. In this case, tax effect is less than Rs.1 crore and therefore, the case has to be dismissed. 3/6 http://www.judis.nic.in T.C.A.No.861 of 2019 5.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the said Circular, which prescribes monetary limit for filing appeal is usefully extracted as follows: 2.As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals / SLPs in Income- tax matters Monetary Limit (Rs.) 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000 6.In view of the submissions made by the learned counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, the Tax Case Appeal is dismissed on account of 4/6 http://www.judis.nic.in T.C.A.No.861 of 2019 tax effect. However, the substantial questions of law framed is left open. In the event the tax effect is above the limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs. (NKKJ) (PVJ) 13.11.2019 sai To 1. The Commissioner of Income Tax, Chennai.

2.Income Tax Appellate Tribunal 'D' Bench, Chennai. 5/6 http://www.judis.nic.in T.C.A.No.861 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

sai T.C.A.No.861 of 2019 Dated : 13.11.2019 6/6 http://www.judis.nic.in