Madras High Court
The Commissioner Of Income Tax vs M/S.Rajsriya Enterprises P Ltd on 24 August, 2022
Author: R. Mahadevan
Bench: R. Mahadevan, Mohammed Shaffiq
TCA.No.783/2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 24.08.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No. 783 of 2013
The Commissioner of Income Tax,
Chennai
.. Appellant
Versus
M/s.Rajsriya Enterprises P Ltd.,
Plot No.706, No.29/137-B,
Poon-Avdi Road, Paruthipattu,
Chennai 600 007 .. Respondent
Tax Case Appeal filed under Section 260-A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal Madras 'B'
Bench, dated 04.06.2010 passed in ITA No.1544/Mds/2009 in respect of
Assessment Year 2002-03.
For Appellant : Mr.T.Ravikumar
Standing Counsel
For Respondent : Mr. S.Sridhar
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https://www.mhc.tn.gov.in/judis
TCA.No.783/2013
JUDGMENT
(Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 04.06.2010 passed by the Income Tax Appellate Tribunal Madras 'B' Bench in ITA No.1544/Mds/2009 for the Assessment Year 2002-03.
2. On 27.01.2014, this tax case appeal is admitted by this Court on the following substantial question of law;
' Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the sum of Rs.54,45,000/- received from the company in which the directors of the assessee have substantial interest is not assessable as deemed dividend under section 2(22)(e) of the Income Tax Act, in the hands of the assessee company?”
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 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). It is also submitted that the tax 2/4 https://www.mhc.tn.gov.in/judis TCA.No.783/2013 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the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial question of law for determination in an appropriate case.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.]
24.08.2022
msr
Index : Yes / No
To
1. The Income Tax Officer,
Company Ward V(1), Chennai.
2. The Commissioner of Income Tax (Appeals)-V, Chennai.
3. The Income Tax Appellate Tribunal Chennai 'C' Bench Chennai, 3/4 https://www.mhc.tn.gov.in/judis TCA.No.783/2013 R. MAHADEVAN, J.
and MOHAMMED SHAFFIQ, J.
msr T.C.A.No. 783 of 2013 24.08.2022 4/4 https://www.mhc.tn.gov.in/judis