T.C.A.Nos.635 & 636 of 2018IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.02.2020 CORAM : HONOURABLE MR.JUSTICE N.KIRUBAKARAN and HONOURABLE MR.JUSTICE P.VELMURUGANT. C.A. Nos.635 & 636 of 2018 and C.M.P. No.12802 of 2018 Commissioner of Income Tax, Chennai Appellant in both Appeals Vs M/s.Rane Holdings Ltd., Maithri No.132, Cathedral Road, Chennai 600 086. PAN: AABCR5136J Respondent in both Appeals PRAYER : Appeals under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, Madras D Bench, dated 27.10.2017 in ITA.No.1089 & 1090/Mds/2017.For Appellant :Mr.T.Raavi KumarSenior standing counselFor Respondent:M/s.Subbaraya Aiyar Padmanabhan http://www.judis.nic.in 1/6T.C.A.Nos.635 & 636 of 2018 COMMON JUDGMENT (Judgment of Court was delivered by N.KIRUBAKARAN, J)The Appeals have been preferred by Revenue against order of Income Tax Appellate Tribunal, MadrasDBench, dated 27.10.2017 in ITA.No.1089 & 1090/Mds/2017 for Assessment year 2008-09 & 2012-13 respectively.2.The Revenue has filed Appeal before ITAT against common order passed by CIT-3, on 31.01.2017 for assessment years 2008-09 and 2012-13. ITAT has rejected claim of revenue and dismissed same, against which only present Appeals have been filed.3.These appeals are admitted on following substantial questions of law : (i)Whether Tribunal was right in deleting disallowance made under Section 14A read with Rule 8D with regard to exempted income especially when there is no provision under Income Tax Act to exclude investments made in subsidiary company while computing disallowances? (ii)Whether Tribunal was right in not considering fact that http://www.judis.nic.in 2/6 T.C.A.Nos.635 & 636 of 2018 as per provisions of Section 14A, expenditure incurred in connection with exempted income is not allowable as deduction and same shall be disallowed even when assessee does not claim such expenditure? 4.Mr.T.Ravikumar, learned Senior Standing Counsel appearing on behalf of appellant would submit that 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 Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per said circular, monetary limit to file appeal before High Court is fixed at Rs.1 crore. In these cases, tax effect is less than Rs.1 crore and therefore, cases have to be dismissed. 5.This Court perused circular dated 08.08.2019 and Paragraph No.2 of said Circular, which prescribes monetary limit for filing appeal is usefully extracted as follows: 2.As step towards further management of litigation, it has been decided by Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of Circular mentioned above and accordingly, table for monetary limits http://www.judis.nic.in 3/6 T.C.A.Nos.635 & 636 of 2018 specified in Para 3 of Circular shall read as follows: S.No. Appeals / SLPs in Income-tax matters Monetary Limit (Rs.)1. Before Appeallate Tribunal50,00,0002. Before High Court 1,00,00,0003. Before Supreme Court2,00,00,000 6.In view of submissions made by learned counsel appearing on behalf of appellant and also in view of Circular No.17/2019 dated 08.08.2019 issued by Director, Central Board of Direct Taxes, Delhi, Tax Case Appeals are dismissed on account of tax effect. However, substantial questions of law framed is left open. In event tax effect is above limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeals to be heard and decided on merits.No costs. Consequently, connected Miscellaneous Petition is also closed.(NKKJ)(PVJ) 26.02.2020 sai To 1.The Commissioner of Income Tax, Chennai. http://www.judis.nic.in 4/6T.C.A.Nos.635 & 636 of 2018 2.Income Tax Appellate Tribunal 'D' Bench, Chennai. http://www.judis.nic.in 5/6T.C.A.Nos.635 & 636 of 2018N.KIRUBAKARAN, J.and P.VELMURUGAN, J. sai T.C.A.Nos.635 & 636 of 2018Dated : 26.02.2020 http://www.judis.nic.in 6/6 Commissioner of Income-tax, Chennai v. Rane Holdings Ltd