Judgt. dt. 19.9.19 in T.C.A.368 & 369 of 2010 CIT v. Indowind Energy Ltd. 1/5 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 19.9.2019 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE C.SARAVANAN Tax Case (Appeal) Nos.368 & 369 of 2010 Commissioner of Income Tax Chennai Appellant Vs. Indowind Energy Limited, Kothari Building 4th Floor, 114 Uthamar Gandhi Salai, Chennai 600 034. Respondent Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 10.7.2009 made in ITA No.2085/Mds/2008 & 2086/Mds/2008. For Appellant : Mr.Rajesh, Standing Counsel For Respondent : Mr.A.S.Sriram for Mr.S.Sridhar COMMON JUDGMENT (Delivered by DR.VINEET KOTHARI,J) These Tax Case Appeals have been filed by Revenue, calling in question correctness of order passed by Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 10.7.2009 made in ITA No.2085/Mds/2008 & 2086/Mds/2008, for Assessment Years http://www.judis.nic.in Judgt. dt. 19.9.19 in T.C.A.368 & 369 of 2010 CIT v. Indowind Energy Ltd. 2/5 2004-05 and 2005-06, by raising following substantial questions of law: "Assessment Year 2004-05:- 1) Whether on facts and in circumstances of case, Tribunal was right in holding that Claim from Indo Net Global Ltd for Rs.5,55,173/- towards reimbursement of expenditure incurred by on behalf of assessee herein is allowable as deduction? 2) Whether on facts and in circumstances of case, Tribunal was right in holding that amount spent by Indo Net Global Ltd towards assessee company can be treated as loan paid to assessee company and only 12% interest on such amount of compensation of Rs.50 lakhs had to be treated as allowable expenditure? 3) Whether on facts and circumstances of case, Tribunal was right in holding that 50% of total amount paid on 27.6.2002 towards UTI Lease Management fee aggregating to Rs.61.2 lakhs is allowable as deduction during this assessment year? 4) Whether on facts and circumstances of case, http://www.judis.nic.in Judgt. dt. 19.9.19 in T.C.A.368 & 369 of 2010 CIT v. Indowind Energy Ltd. 3/5 Tribunal was right in holding that expenses claimed towards travel/advertisement/rates and taxes with respect to project of commissioning of wind mills is allowable as deduction? 5) Whether on facts and circumstances of case, Tribunal was right in holding that treating advance paid to its group company and not recovered as business loss and allowing deduction? Assessment Year 2005-06:- 6) Whether on facts and circumstances of case, Tribunal was right in holding that 50% of total amount paid on 27.6.2002 towards UTI Lease Management fee aggregating to Rs.61.2 Lakhs is allowable as deduction during this assessment year?" 2. When matters are taken up for hearing, learned Senior Standing Counsel 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 Judgt. dt. 19.9.19 in T.C.A.368 & 369 of 2010 CIT v. Indowind Energy Ltd. 4/5 3. In instant cases, tax effect is said to be less than monetary limit imposed and therefore, Appeals filed by Revenue are dismissed, as withdrawn, keeping open substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (C.S.N.,J.) 19.9.2019 Index : Yes/No Internet : Yes/No ssk. To 1. Commissioner of Income Tax Chennai 2. Income Tax Appellate Tribunal, 'B' Bench, Chennai. 3. Assistant Commissioner of Income Tax, Company Circle II(3), Chennai. 4. Indowind Energy Limited, Kothari Building 4th Floor, 114 Uthamar Gandhi Salai, Chennai 600 034. http://www.judis.nic.in Judgt. dt. 19.9.19 in T.C.A.368 & 369 of 2010 CIT v. Indowind Energy Ltd. 5/5 DR.VINEET KOTHARI, J. and C.SARAVANAN, J. ssk. T.C.(A) Nos.368 & 369 of 2010 19.9.2019. http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Indowind Energy Limited