Commissioner Of Income Tax v. M/S.kh Leather Industries Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 27.08.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.446 OF 2015 Commissioner of Income Tax,121, Mahatma Gandhi Road,Chennai....AppellantVs M/s.KH Leather Industries Pvt. Ltd.,206, Aryas, Periyar EVR High Road,Kilpauk, Chennai - 600 010.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 29.10.2014 made in ITA.No.2016/MDS/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2008-09. against the order dated 26.02.2014made in ITA.NO.1200/2013-2014 on the file of the office of theCommissioner of Income Tax (Appeals)-II Numbakkam, Chennai-34against the order dated 28.06.2010 vide PAN.No. on thefile of the Income Tax Officer, Company Ward 11(1), No.121,Mahatma Gandhi Road, Chennai-34. For Respondent: No appearance We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel, assisted by Mr.S.Rajesh, learned StandingCounsel appearing for the appellant/revenue. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated29.10.2014 made in ITA.No.2016/MDS/2014 on the file of the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal, Chennai 'C' Bench for theassessment year 2008-09. 3.The appeal was admitted on 22.07.2015 on the followingsubstantial questions of law : “1.Whether on the facts and in thecircumstances of the case, the Tribunal wasright in granting deduction under Section 10B ofthe Act, when the assessee used more than 20% ofthe old machineries by splitting andreconstructing in the new unit? 2.Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunalwas right in dismissing the Department's appeal,when similar issue for the earlier year ispending before the High Court?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// cse Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax (Appeals)-II,Nungambakkam, Chennai-34Nungambakkam, Chennai-34 3.The Income Tax Officer,Company Circle II(1),No.121, Mahatma Gandhi Road,Chennai-34.Company Circle II(1),No.121, Mahatma Gandhi Road,Chennai-34. +1cc to Mr.S.Sridhar, Advocate, S.R.No.74512 TCA.No.446 of 2015 NRL(CO)CS/30/10/2019