Commissioner Of Income Tax, Chennai v. M/S.farida Leatherware Pvt.ltd., Chennai-84

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.306 & 307 of 2011 Commissioner of Income Tax,Chennai...Appellant in both casesVsM/s.Farida Leatherware Pvt.Ltd.,Chennai-84....Respondent in both cases APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 21.1.2011 made inITA.Nos.253/Mds/2007 and 738/ Mds/2008 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Benchrespectively for the assessment years 2003-04 and 2004-05against the Commissioner of Income Tax(Appeals)-III inITA.Nos.792/06-07,ITA.NO.8/07-08/A III dated 23.01.2008 forthe Assessment Year 2004-2005. Against the order of the Commissioner of Income TaxAppeals III, dated 02.11.2006 in ITA.NO.707/2005-2006/ AIII in the Assessment Year 2003-2004. Against the order of the Deputy Commissioner of IncomeTax Company circle II(1) chennai 34 dated 08.12.2006 &10.02.2006 in PAN/GIR NO. AAACF 4708 D for the AssessmentYear 2004-2005 & 2003-2004. For Appellant: Mr.Karthik Ranganathan, SSC Respondent : served and no appearance COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel appearing for the appellant – Revenue. https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals, filed by the Revenue under Section260A of the Income Tax Act, 1961, are directed against thecommon order dated 21.1.2011 made in ITA.Nos.253/Mds/2007and 738/ Mds/2008 on the file of the Income Tax AppellateTribunal, Chennai 'A' Bench respectively for the assessmentyears 2003-04 and 2004-05. 3. The appeals were admitted on 23.8.2011 on thefollowing substantial question of law :“Whether, on the facts and in thecircumstances of the case, the IncomeTax Appellate Tribunal was right inholding that expenditure incurred forpurchase of moulds is revenue innature?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by theRevenue on account of the low tax effect in terms ofCircular No.17/2019 dated 08.8.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the HighCourt has been increased to Rs.1 Crore. It is furthersubmitted that the tax effect in the respective cases isless than the threshold limit. 5. In the light of the said submissions, the above taxcase appeals are dismissed on account of the low taxeffect. The substantial question of law framed is leftopen. In the event the tax effect in the respective casesis above the threshold limit fixed in the said circular,liberty is granted to the Revenue to make a mention to thisCourt to restore the appeals to be heard and decided onmerits. //True Copy// Sub Assistant Registrar To THE INCOME TAX APPELLATE TRIBUNAL, CHENNAI 'A' BENCH.2.THE DEPUTY COMMISSIONER OF INCOME TAX COMPANY CIRCLE II(1) CHENNAI 343.THE COMMISSIONER OF INCOME TAX APPEALS III,CHENNIA 34.TCA.Nos.306 & 307 of 2011A.SK(15/10/2019) https://hcservices.ecourts.gov.in/hcservices/