Commissioner of Income-tax, Chennai v. Sundaram Clayton Ltd
[Citation -2020-LL-0713-1]
Citation | 2020-LL-0713-1 |
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Appellant Name | Commissioner of Income-tax, Chennai |
Respondent Name | Sundaram Clayton Ltd. |
Court | HIGH COURT OF MADRAS |
Relevant Act | Income-tax |
Date of Order | 13/07/2020 |
Judgment | View Judgment |
Keyword Tags | monetary limit • tax effect |
Bot Summary: | 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 B Bench, Chennai dated 8.11.2004 in ITA No.696/MDS/1996, by raising the following substantial questions of law: Whether on the facts and circumstances of the case, the Tribunal was right in holding that the transaction is not hit by the provision of Section 50, even though the assessee had clearly demarcated the depreciable assets sold during the year, as part of the sale of the undertaking and the transfer price was also fixed after taking into account the value of the depreciable assets and the immovable assets of the assessee company 3. When the matter is taken up for hearing, learned Senior Standing 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is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. |