IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 04.09.2019 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.123 of 2011 Commissioner of Income Tax -1, Chennai. Appellant Vs. M/s. Transworld Garnet India Private Ltd., Ramaniyam Arcade, III Floor, E-28, II Avenue, Besant Nagar, Chennai 600 090. .. Respondent Appeal under Section 260-A of Income Tax Act, 1961, against order of Income Tax Appellate Tribunal, Chennai 'C' Bench dated 14.10.2010 - ITA No.1399/Mds/2009 Assessment year 1997-1998. For Appellant : M/s.V.Pushpa Junior Standing Counsel. I/T. For Respondent : Mr.T.K.Bhaskar 2/4 Tax Case Appeal No.123 of 2011 Commissioner of Income Tax -1, Chennai v. M/s. Transworld Garnet India Private Ltd., JUDGMENT (By DR.VINEET KOTHARI,J.) This Tax Case Appeal has been filed by Revenue, calling in question correctness of order passed by Income Tax Appellate Tribunal, Chennai 'C' Bench, dated 14.10.2010, in ITA No.1399/Mds/2009 Assessment year 1997-1998, by raising following substantial questions of law : i) "Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in confirming order of Commissioner of Income Tax (Appeals) deleting disallowances towards pre-production expenses viz., (i) 20% of expenses of Rs.1,69,57,073/- (which have been disallowed on adhoc basis), (ii) remuneration to Managing Director sum of Rs.39,00,000/- (iii) sum of Rs.50,09,291/- (disallowed by Assessing Officer for want of complete details)? 2) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in confirming order of Commissioner of Income Tax (Appeals) restricting disallowance of http://www.judis.nic.in 3 /4 Tax Case Appeal No.123 of 2011 Commissioner of Income Tax -1, Chennai v. M/s. Transworld Garnet India Private Ltd., trading loss to Rs.8,82,895/- as against Rs.35,06,713/- made by Assessing Officer? 3) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in deciding issues referred to in preceding questions without considering specific grounds of appeal raised by Revenue in appeal before Tribunal? 4) Whether on facts and in circumstance of case, Income Tax Appellate Tribunal was right in not holding C.I.T.(Appeals was wrong in deleting above circumstances without calling for remand report from Assessing Officer?'" 2. When matter is taken up for hearing, learned Standing Counsel for Department brought to our notice Circular instruction issued by Central Board of Direct Taxes vide Circular No.17/2019, dated 8th August,2019, wherein, it is stipulated that appeals shall not be filed/pursued by Department before High Court in cases where tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). http://www.judis.nic.in 4 /4 Tax Case Appeal No.123 of 2011 Commissioner of Income Tax -1, Chennai v. M/s. Transworld Garnet India Private Ltd., DR.VINEET KOTHARI, J. and C.SARAVANAN, J. kkd 3. In instant case, tax effect is said to be less than monetary limit imposed and, therefore, Appeal filed by Revenue is dismissed, as withdrawn, keeping open substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (C.S.N.,J.) 04.09.2019 Index : Yes/No Internet : Yes/No kkd To Income Tax Appellate Tribunal, Chennai 'C' Bench, Chennai. TCA No.123 of 2011 Commissioner of Income-tax-1, Chennai v. Transworld Garnet India Private Ltd