COMMISSIONER OF INCOME TAX vs. TVS CAPITAL FUND LIMITED

T.C.A.No.864 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.864 of 2016 Commissioner of Income Tax, Corporate Circle - 3, Chennai. ... Appellant

Versus M/s. TVS Capital Fund Limited, Jayalakshmi Estates, No.29, Haddows Road, Chennai 600 006. PAN: AAACT 1154 H ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 15.06.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.15/Mds/2016. For Appellant : Mr.M.Swaminathan, Senior Standing Counsel Mrs.V.Pushpa, Standing Counsel For Respondent : Mr.R.Venkatanarayanan for M/s. Subbaraya Aiyar Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.864 of 2016

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 15.06.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.15/Mds/2016, relating to the assessment year 2011-12.

2.By order dated 31.01.2017, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “ (i) Whether, on the facts and in the circumstances of the case and in law, the Tribunal was correct and justified in holding that strategic investments are not liable for disallowance under Section 14A when the provisions of the said section as well as Rule 8D does not provide for any such exemption? (ii) Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that investment made in sister concerns are not liable for disallowance under Section 14A when the provisions of the said section as well as Rule 8D does not provide for any such exemption? " Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.864 of 2016 3.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. 4.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.) (M.S.Q., J.) 18.08.2022

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Index : Yes / No av Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.864 of 2016 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, Chennai.