TCA.No.241 of 2018 In High Court of Judicature at Madras Dated : 08.7.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.241 of 2018 Commissioner of Income Tax, Chennai Appellant Vs Shriram Ownership Trust, Chennai-17. Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 05.7.2017 made in ITA.No.406/Mds/2017 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2013-14. For Appellant: Mrs.R.Hemalatha For Respondent: Mr.R.Sivaraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for appellant Revenue and Mr.R.Sivaranan, learned counsel for respondent. 1/4 http://www.judis.nic.in TCA.No.241 of 2018 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 05.7.2017 made in ITA.No. 406/Mds/2017 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2013-14. 3. Revenue filed this appeal by raising following substantial question of law : Whether Tribunal was correct in holding that investment, which yielded no exempt income was to be excluded while computing deduction under Section 14A when provisions of Income Tax Act and Rules made thereunder do not provide for any such exclusion and further such investment shall always remain in tax free territory ? 4. learned Senior Standing Counsel for appellant submits that 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. 2/4 http://www.judis.nic.in TCA.No.241 of 2018 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial question of law raised is 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. 08.7.2020 To Income Tax Appellate Tribunal, Chennai 'C' Bench. RS 3/4 http://www.judis.nic.in TCA.No.241 of 2018 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.241 of 2018 08.7.2020 4/4 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Shriram Ownership Trust