Commissioner Of Income Tax, Chennai v. Fl Smidth Pvt. Ltd., Chennai

In the High Court of Judicature at Madras Dated : 19.8.2019 Coram : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.966 and 969 of 2010 Commissioner of Income Tax,Chennai ...Appellant VsFL Smidth Pvt. Ltd., Chennai.603103. ...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 08.1.2010 made in ITA.Nos.1531and 1534/Mds/2009 on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench respectively for the assessmentyears 1998-99 and 2005-06 and against the O/o Commissioner ofIncome Tax (Appeals)II, Nungambakkam, Chennai 34 and made inI.T.A. No. 171/2008-2009 dated 08.07.2009 and against theAssistant Commissioner of Income Tax, Central Excise III(2)Chennai and made in P.A. No./G.O. No. AAACF4817F order dated31.12.2008 for the Assessment year 2005-2006 and AssistantCommissioner of Income Tax Central Excise Circle III(2) Chennaiand made in P.A. No./G.I. No. AAACF4817F order dated 31.10.2008for the Assessment year 1998-1999. For Appellant :Mr.J.Narayanasamy, SSC For Respondent:Mr.G.Baskar COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.J.Narayanasamy, learned Senior StandingCounsel appearing for the appellant – Revenue and Mr.G.Baskar,learned counsel appearing for the respondent – assessee. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 08.1.2010 made in ITA.Nos.1531 and 1534/Mds/2009 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Benchrespectively for the assessment years 1998-99 and 2005-06. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeals were admitted on 20.12.2010 on the followingsubstantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatinterest under Section 234D cannot becharged in respect of the refund grantedprior to the insertion of Section 234D whenthe regular assessment was completed onlysubsequent to the insertion of Section234D ? andii. Whether, on the facts and in thecircumstances of the case, no interest canbe charged even for the period subsequent tothe introduction of Section 234D merely onthe ground that the refund was granted priorto its introduction?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. s/d- Assistant Registrar(CS VIII) To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income TaxAppeals II, Nungambakkam, Chennai 34.Appeals II, Nungambakkam, Chennai 34. 3.The Assistant Commissioner of Income TaxCentral Excise III(2) Chennai 34.Central Excise III(2) Chennai 34. +2 Ccs to Mr.N. Muthukumar, Advocate sr 71031, 71033. TCA.Nos.966 & 969 of 2010RR(CO)SP(21/01/2020)