The Commissioner of Income-tax, Chennai v. Wheel India Ltd
[Citation -2020-LL-0616-26]

Citation 2020-LL-0616-26
Appellant Name The Commissioner of Income-tax, Chennai
Respondent Name Wheel India Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 16/06/2020
Assessment Year 2007-08
Judgment View Judgment
Keyword Tags sales tax deferral scheme • sales tax liability • additional grounds • net present value • monetary limit • low tax effect
Bot Summary: 2136/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2007-08. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 26.11.2013 made in ITA.No. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in entertaining additional grounds on the issue of disallowance of loan arising from sales tax liability, which does not arise out of order of the CIT(A) nor the assessment order and 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the difference between sales tax loan amount and the amount paid on net present value basis under sales tax deferral scheme of the Maharashtra Government is not a remission of liability under Section 41(1) of the Income Tax Act 4. 579 of 2015 the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits.


TCA.No.579 of 2015 In High Court of Judicature at Madras Dated : 16.6.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.579 of 2015 Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Wheel India Ltd., Chennai-50 ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 26.11.2013 made in ITA.No.2136/Mds/2010 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for assessment year 2007-08. For Appellant: Mr.T.Ravikumar, SSC & Mrs.R.Hemalatha, SSC For Respondent: Mr.R.Vijayaraghavan for M/s.Subbarayar Aiyer Padmanabhan Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for appellant Revenue and Mr.R. Vijayaraghavan, learned counsel appearing on behalf of M/s.Subbaraya Aiyer 1/4 http://www.judis.nic.in TCA.No.579 of 2015 Padmanabhan, learned counsel on record for respondent. 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 (for short, Act) is directed against order dated 26.11.2013 made in ITA.No.2136/Mds/2010 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench (for brevity, Tribunal) for assessment year 2007-08. 3. appeal has been admitted on 23.7.2015 on following substantial questions of law : 1. Whether, on facts and in circumstances of case, Appellate Tribunal was right in entertaining additional grounds on issue of disallowance of loan arising from sales tax liability, which does not arise out of order of CIT(A) nor assessment order? and 2. Whether, on facts and in circumstances of case, Appellate Tribunal was right in law in holding that difference between sales tax loan amount and amount paid on net present value basis under sales tax deferral scheme of Maharashtra Government is not remission of liability under Section 41(1) of Income Tax Act?" 4. learned Senior Standing Counsel for appellant submits that 2/4 http://www.judis.nic.in TCA.No.579 of 2015 above appeal is not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in this case is less than threshold limit. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeal to be heard and decided on merits. No costs. 16.6.2020 To Income Tax Appellate Tribunal, Chennai 'D' Bench. RS 3/4 http://www.judis.nic.in TCA.No.579 of 2015 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS TCA.No.579 of 2015 16.6.2020 4/4 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Wheel India Ltd
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