Commissioner of Income-tax, Chennai v. First India Asset Management Pvt Ltd., (Now known as Sahara Asset Management Company Pvt. Ltd.)
|Commissioner of Income-tax, Chennai
|First India Asset Management Pvt Ltd., (Now known as Sahara Asset Management Company Pvt. Ltd.)
|HIGH COURT OF MADRAS
|Date of Order
|substantial question of law • business activities • promotion expenses • monetary limit • mutual fund • tax effect
|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is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial question of law for determination in appropriate cases.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.