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Madras High Court

C.I.T. vs . First India Asset Mgt. P Ltd. on 7 August, 2020

Author: Vineet Kothari

Bench: Vineet Kothari, Krishnan Ramasamy

                                                                     Order dt.07.08.2020 in T.C.A.No.389 of 2009
                                                                           C.I.T. vs. First India Asset Mgt. P Ltd.
                                                            1/4

                                     IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    DATED: 07.08.2020

                                                          CORAM

                                       THE HON'BLE DR.JUSTICE VINEET KOTHARI
                                                        AND
                                     THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY

                                                  T.C.A.No.389 of 2009

                      Commissioner of Income Tax,
                      Chennai                                                           ...      Appellant

                                                               vs.
                      First India Asset Management Pvt Ltd.,
                      (Now known as Sahara Asset
                      Managemetn Company Pvt Ltd)
                      12th Floor, Express Tower,
                      Nariman Point, Mumbai 400021                                      ...      Respondent

                            Prayer ::- Appeal filed against the order of the Income Tax Appellate
                      Tribunal, Madras A Bench, dated 29 August 2008 in ITA No.987/Mds/2007.

                            For appellant       : Mr.Karthik Ranganathan
                                                  Senior Standing Counsel


                                                          ORDER

(Made by DR.VINEET KOTHARI, J.) The Court was held by Video Conference, as per the Resolution of the Full Court dated 3 July 2020, by Judges at their respective residence and the counsel, staff of the Court appearing from their respective residences.

http://www.judis.nic.in Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd.

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2. This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras “A” Bench, in ITA No.987/Mds/2007, by raising the following substantial question of law:

"Whether on the facts and circumstances of the case, the Tribunal was right in deleting the addition of Rs.26,38,776/- on account of mutual fund launch expenses for growth fund scheme and Rs.1,61,61,088/- on account of mutual fund promotion expenses when the expenses under reference have been incurred by the assessee purely for the purpose of business activities of another person ?”

3. When the matter is taken up for hearing, learned Standing Counsel brought to our notice the Circular issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8 August 2019, 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 exceed Rs.1,00,00,000/- (Rupees One Crore).

4. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial question of law for determination in appropriate cases. No costs.

http://www.judis.nic.in Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd.

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5. Registry is directed to send a copy of the judgment to the Respondent / Assessee in the address given in the Appeal.

                                                                   (V.K.,J.)                   (K.R.,J.)
                                                                             07.08.2020
                      kpl/tar




                      To

First India Asset Management Pvt Ltd., (Now known as Sahara Asset Managemetn Company Pvt Ltd) 12th Floor, Express Tower, Nariman Point, Mumbai 400021 http://www.judis.nic.in Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd.

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DR.VINEET KOTHARI, J.

and KRISHNAN RAMASAMY, J.

(tar) T.C.A.No.389 of 2009 07.08.2020 http://www.judis.nic.in