The Commissioner of Income-tax, Chennai v. Chemise Indus P. Ltd
|The Commissioner of Income-tax, Chennai
|Chemise Indus P. Ltd.
|HIGH COURT OF MADRAS
|Date of Order
|beneficial shareholder • deemed dividend • monetary limit • tax effect
|In Judgment in TCA No.44 of 2016 dated 12.03.2020 JUDGMENT This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, by raising the following substantial questions of law: 1.Whether on the facts and in the circumstances of the case, the Tribunal was right in deleting the addition made u/s.2(22)9e) of the Income Tax Act 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the deemed dividend u/s.2(22)(e) arises in the hands of Smt.Radha Daga and not in the hands of the assessee M/s.Chemise Indus Private Limited 3. Whether on the facts and in circumstances of the case, the Tribunal was right in holding that the addition should be made only in the hands of the registered and beneficial shareholder and not in the hands of the concerns in which such shareholder is having substantial interest 2. In Judgment in TCA No.44 of 2016 dated 12.03.2020 Counsel brought to our notice the Circular instruction issued by the 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 the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue is dismissed as not pressed, keeping open the substantial questions of law for determination in an appropriate case.