THE PRINCIPAL COMMISSIONER O vs. M/S MERIDIAN APPARELS LIMITE

TCA.No.90 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.2.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.90 of 2021

The Principal Commissioner of Income Tax, Corporate Circle 4(1), Chennai-34 ...Appellant Vs M/s.Meridian Apparels Ltd., Chennai-18. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 28.4.2017 passed by the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.2830/Mds/2016 for the assessment year 2011-12. For Appellant: Mr.Karthik Ranganathan, SC For Respondent : Mr.A.S.Sriraman Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.90 of 2021 dated 28.4.2017 made in I.T.A.No.2830/Mds/2016 on the file of the Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) for the assessment year 2011-12. 2. The Revenue has filed this appeal by raising the following substantial question of law: “Whether,

the

facts

and circumstances of the case and in law, the Tribunal is correct in deleting the addition made under Section 2(24)(x) read with Section 36(1)(va) of the Income Tax Act, 1961?” 3. We have heard Mr.Karthik Ranganathan, learned Standing Counsel appearing for the appellant/Revenue and Mr.A.S.Sriraman, learned counsel accepting notice for the respondent/assessee. 4. The learned Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.90 of 2021 this case is less than the threshold limit. 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law raised is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeal to be heard and decided on merits. No costs. 01.2.2021 uTo The Income Tax Appellate Tribunal, 'A' Bench, Chennai. RS 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.90 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS TCA.No.90 of 2021 01.2.2021 4/4 https://www.mhc.tn.gov.in/judis/