Madras High Court
The Commissioner Of Income Tax vs M/S. Accel Frontline Ltd on 17 December, 2021
Author: R.Mahadevan
Bench: R.Mahadevan, Mohammed Shaffiq
T.C.A.Nos. 545 to 547 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 17.12.2021
CORAM
THE HONOURABLE MR.JUSTICE R.MAHADEVAN
and
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
T.C.A.Nos. 545 to 547 of 2021
and
C.M.P. Nos. 19818 and 19863 of 2021
T.C.A. No. 545 of 2021:-
The Commissioner of Income Tax
Chennai. .. Appellant
Vs.
M/s. Accel Frontline Ltd
(formerly known as M/s. Accel ICIM Frontline Ltd)
No.75, Nelson Manickam Road
Chennai - 600 029.
PAN AAA CA 5622 M .. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal 'B' Bench,
Chennai dated 27.11.2015 in ITA No.2782/Mds/2014 for the assessment
year 2009-10.
T.C.A. No. 546 of 2021:-
The Commissioner of Income Tax
Chennai. .. Appellant
1/6
https://www.mhc.tn.gov.in/judis
T.C.A.Nos. 545 to 547 of 2021
Vs.
M/s. Accel Frontline Ltd
(formerly known as M/s. Accel ICIM Frontline Ltd)
No.75, Nelson Manickam Road
Chennai - 600 029.
PAN AAA CA 5622 M .. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal 'B' Bench,
Chennai dated 27.11.2015 in ITA No.2780/Mds/2014 for the assessment
year 2007-08.
T.C.A. No. 547 of 2021:-
The Commissioner of Income Tax
Chennai. .. Appellant
Vs.
M/s. Accel Frontline Ltd
(formerly known as M/s. Accel ICIM Frontline Ltd)
No.75, Nelson Manickam Road
Chennai - 600 029.
PAN AAA CA 5622 M .. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal 'B' Bench,
Chennai dated 27.11.2015 in ITA No.2781/Mds/2014 for the assessment
year 2008-09.
2/6
https://www.mhc.tn.gov.in/judis
T.C.A.Nos. 545 to 547 of 2021
For Appellant : Mrs. R.Hemalatha (in all Tcs )
Senior Standing Counsel
For Respondent : Mr. N.V.Balaji (in all Tcs )
COMMON JUDGMENT
(Judgment was delivered by R.MAHADEVAN, J.) These tax case appeals have been filed by the appellant /Revenue challenging the order dated 27.11.2015 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in I.T.A. Nos. 2780 to 2782/Mds/2014, relating to the assessment years 2007-08 to 2009-10, by raising the following substantial questions of law:
T.C.A. No. 545 of 2021“ Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of Rule 8D being prospective in nature cannot be applied for the assessment year 2007-08 even though section 14-A was inserted with retrospective effect from 01.04.1961?3/6
https://www.mhc.tn.gov.in/judis T.C.A.Nos. 545 to 547 of 2021 T.C.A. Nos. 546 and 547 of 2021 “1.Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of Rule 8D being prospective in nature cannot be applied for the assessment year 2007-08 even though section 14-A was inserted with retrospective effect from 01.04.1961?
2.Whether on the facts and in the circumstances of the case, the Tribunal was right in directing the AO to do the apportionment of common expenses on the basis of turnover of STPI Unit and non STPI unit which the AO himself had reworked the apportionment of common expenses considering 1/3rd audit fee and director's remuneration towards STPI Unit?”
2. When the matters were 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 appeals shall not be filed/pursued by the Department before the High Court in cases, where the tax effect does not 4/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos. 545 to 547 of 2021 exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in these appeals are less than the threshold limit and there is no audit objection.
3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. Consequently, connected miscellaneous petitions are closed.
[R.M.D., J.] [M.S.Q., J.] 17.12.2021 Index : Yes/No Speaking/Non-Speaking Order Maya To
1. The Commissioner of Income Tax Chennai.
2. The Income Tax Appellate Tribunal 'B' Bench Chennai 5/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos. 545 to 547 of 2021 R. MAHADEVAN, J.
and MOHAMMED SHAFFIQ, J.
Maya T.C.A.Nos. 545 to 547 of 2021 Dated : 17.12.2021 6/6 https://www.mhc.tn.gov.in/judis