Coimbatore v. M/S.precot Meridian Ltd 'Supreme'

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.06.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.820 of 2013 The Commissioner of Income Coimbatore. Coimbatore. ... Appellant Vs.M/s.Precot Meridian Ltd'Supreme', 737, Green FieldsPuliakulam RoadCoimbatore-641 045... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the common order of the Income Tax AppellateTribunal 'A' Bench, Chennai dated 20.02.2013 in ITANo.1870/Mds/2012 against the order of the Commissioner of IncomeTax (Appeals)1 Coimbatore dated 03.09.2012 for the Assessmentyear 2006-2007 and against the order of the AssistantCommissioner of Income Tax, Company Circle I(2) Coimbatore dated21.12.2011 PAN/GIR. No. . For Appellant :Mr.T.R.Senthil Kumar, Senior Standing Counsel assisted by Ms.K.G.Usha RaniFor Respondent : Mr.S.Sridhar J U D G M E N T(Judgment of the Court was delivered by DR.VINEETKOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'A' Bench, Chennai, by raising thefollowing substantial questions of law: “ 1. Whether under the facts and circumstances of thecase, the Income Tax Appellate Tribunal was right inholding that for charging of interest under theprovisions of Section 220(2) the period for reckoningof interest has to be taken from the date of passingof the fresh assessment order? https://hcservices.ecourts.gov.in/hcservices/ 2. Whether based on material available before it, theIncome Tax Appellate Tribunal was right in law in notaccepting the fact that where the assessment madeoriginally by the assessing officer is either variedor even set aside by the appellate authority but onfurther appeal, the original order is restored eitherin part or in full, interest is payable under Section220(2) is required to be computed with reference tothe due date reckoned from the original demand noticeand the quantum of which the tax is payable is to bereckoned with reference to the tax finally determined? 3. Whether under the facts and circumstances of thecase, the Income Tax Appellate Tribunal was right inlaw in not considering the circular issued by theCentral Board of Direct Taxes with reference tocharging of interest under Section 220(2) whereassessment is set aside / cancelled and determinedthrough an order giving effect to the appellateorder?” 2. When the matter was taken up for hearing, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial questions of law for determination in an appropriatecase. s/d- Assistant Registrar KSTTo 1. Income Tax Appellate Tribunal'A' Bench,Chennai. https://hcservices.ecourts.gov.in/hcservices/ 2. The Commissioner of Income Tax Coimbatore 3. The Assistant Commissioner of Income Tax Circle-1(2) CoimbatoreCircle-1(2) Coimbatore T.C.(A) No.820 of 2013 MP(CO)SP(29/07/2020)