The Commissioner of Income-tax, Chennai v. Rane Holdings Ltd
|The Commissioner of Income-tax, Chennai
|Rane Holdings Ltd.
|HIGH COURT OF MADRAS
|Date of Order
|expenditure incurred • exempted income • monetary limit • tax effect
|635 636 of 2018 COMMON JUDGMENTThe Appeals have been preferred by the Revenue against the order of the Income Tax Appellate Tribunal, MadrasDBench, dated 27.10.2017 in ITA.No. 2.The Revenue has filed Appeal before the ITAT against the common order passed by the CIT-3, on 31.01.2017 for the assessment years 2008-09 and 2012-13. 635 636 of 2018 as per the provisions of Section 14A, the expenditure incurred in connection with exempted income is not allowable as a deduction and the same shall be disallowed even when the assessee does not claim such an expenditure 4.Mr.T.Ravikumar, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect in this case is less than Rs.1 crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 crore. In these cases, tax effect is less than Rs.1 crore and therefore, the cases have to be dismissed. 6.In view of the submissions made by the learned counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, the Tax Case Appeals are dismissed on account of tax effect. In the event the tax effect is above the limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decided on merits.