TCA.No.1118 of 2010 In High Court of Judicature at Madras Dated : 19.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.1118 of 2010 Commissioner of Income Tax, Chennai ...Appellant Vs M/s.W.S.Industries (India) Ltd., Chennai-116. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 21.8.2009 made in ITA.No.1373/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2004-05. For Appellant: Mr.M.Swaminathan, SSC, assisted by Ms.V.Pushpa, SC Respondent: served and no appearance Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.M.Swaminathan, learned Senior Standing Counsel, assisted by Ms.V.Pushpa, learned Standing Counsel appearing for appellant Revenue. 1/4 http://www.judis.nic.in TCA.No.1118 of 2010 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 21.8.2009 made in ITA.No. 1373/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2004-05. 3. appeal was admitted on 10.1.2011 on following substantial question of law : Whether, on facts and circumstances of case, Tribunal was right in holding that guarantee payments of Rs.13.07 Crores made by assessee to banks and other parties on behalf of its subsidiary company is for purpose of assessee's business is allowable as deduction? 4. learned Senior Standing Counsel for appellant submits that above appeal is not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in this case is less than threshold limit. 5. In light of said submissions, above tax case appeal is 2/4 http://www.judis.nic.in TCA.No.1118 of 2010 dismissed on account of low tax effect. substantial question of law framed is left open. In event tax effect is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeal to be heard and decided on merits. 19.8.2019 Internet: Yes To Income Tax Appellate Tribunal, Chennai 'C' Bench. RS 3/4 http://www.judis.nic.in TCA.No.1118 of 2010 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.1118 of 2010 19.8.2019 4/4 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. W.S. Industries (India) Ltd