Commissioner of Income-tax, Chennai v. First India Asset Management Pvt Ltd., (Now known as Sahara Asset Management Company Pvt. Ltd.)
[Citation -2020-LL-0807-9]

Citation 2020-LL-0807-9
Appellant Name Commissioner of Income-tax, Chennai
Respondent Name First India Asset Management Pvt Ltd., (Now known as Sahara Asset Management Company Pvt. Ltd.)
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 07/08/2020
Judgment View Judgment
Keyword Tags substantial question of law • business activities • promotion expenses • monetary limit • mutual fund • tax effect
Bot Summary: Order dt.07.08.2020 in T.C.A.No. For appellant : Mr.Karthik Ranganathan Senior Standing Counsel ORDER The Court was held by Video Conference, as per the Resolution of the Full Court dated 3 July 2020, by Judges at their respective residence and the counsel, staff of the Court appearing from their respective residences. In Order dt.07.08.2020 in T.C.A.No. 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, Madras A Bench, in ITA No.987/Mds/2007, by raising the following substantial question of law: Whether on the facts and circumstances of the case, the Tribunal was right in deleting the addition of Rs.26,38,776/- on account of mutual fund launch expenses for growth fund scheme and Rs.1,61,61,088/- on account of mutual fund promotion expenses when the expenses under reference have been incurred by the assessee purely for the purpose of business activities of another person 3. When the matter is taken up for hearing, learned Standing Counsel brought to our notice the Circular issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8 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is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial question of law for determination in appropriate cases. Registry is directed to send a copy of the judgment to the Respondent / Assessee in the address given in the Appeal.


Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd. 1/4 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 07.08.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE KRISHNAN RAMASAMY T.C.A.No.389 of 2009 Commissioner of Income Tax, Chennai ... Appellant vs. First India Asset Management Pvt Ltd., (Now known as Sahara Asset Managemetn Company Pvt Ltd) 12th Floor, Express Tower, Nariman Point, Mumbai 400021 ... Respondent Prayer ::- Appeal filed against order of Income Tax Appellate Tribunal, Madras Bench, dated 29 August 2008 in ITA No.987/Mds/2007. For appellant : Mr.Karthik Ranganathan Senior Standing Counsel ORDER (Made by DR.VINEET KOTHARI, J.) Court was held by Video Conference, as per Resolution of Full Court dated 3 July 2020, by Judges at their respective residence and counsel, staff of Court appearing from their respective residences. http://www.judis.nic.in Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd. 2/4 2. This Tax Case Appeal has been filed by Revenue, calling in question correctness of order passed by Income Tax Appellate Tribunal, Madras Bench, in ITA No.987/Mds/2007, by raising following substantial question of law: "Whether on facts and circumstances of case, Tribunal was right in deleting addition of Rs.26,38,776/- on account of mutual fund launch expenses for growth fund scheme and Rs.1,61,61,088/- on account of mutual fund promotion expenses when expenses under reference have been incurred by assessee purely for purpose of business activities of another person ? 3. When matter is taken up for hearing, learned Standing Counsel brought to our notice Circular issued by Central Board of Direct Taxes vide Circular No.17/2019 dated 8 August 2019, wherein, it is stipulated that appeals shall not be filed/pursued by Department before High Court in cases where tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). 4. In instant case, tax effect is said to be less than monetary limit imposed and therefore, Appeal filed by Revenue is dismissed as withdrawn, keeping open substantial question of law for determination in appropriate cases. No costs. http://www.judis.nic.in Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd. 3/4 5. Registry is directed to send copy of judgment to Respondent / Assessee in address given in Appeal. (V.K.,J.) (K.R.,J.) 07.08.2020 kpl/tar To First India Asset Management Pvt Ltd., (Now known as Sahara Asset Managemetn Company Pvt Ltd) 12th Floor, Express Tower, Nariman Point, Mumbai 400021 http://www.judis.nic.in Order dt.07.08.2020 in T.C.A.No.389 of 2009 C.I.T. vs. First India Asset Mgt. P Ltd. 4/4 DR.VINEET KOTHARI, J. and KRISHNAN RAMASAMY, J. (tar) T.C.A.No.389 of 2009 07.08.2020 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. First India Asset Management Pvt Ltd., (Now known as Sahara Asset Management Company Pvt. Ltd.)
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