Commissioner Of Income Tax, Chennai v. M/S.sundaram Fasteners Limited, 98A, Dr.radhakrishnan Salai, Chennai 600 004

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 04.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN andTHE HONOURABLE MR.JUSTICE P.VELMURUGAN Commissioner of Income Tax,Chennai.... Appellant(in all the appeals)Vs M/s.Sundaram Fasteners Limited,98A, Dr.Radhakrishnan Salai,Chennai 600 004.PAN: ... Respondent(in all the appeals) PRAYER in TCA.No.169 of 2018: Appeal under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras “D” Bench, dated 15.07.2016 passedin ITA.No.956/Mds/2011. PRAYER in TCA.No.170 of 2018: Appeal under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras “D” Bench, dated 15.07.2016 passedin ITA.No.1009/Mds/2011. PRAYER in TCA.No.171 of 2018: Appeal under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras “D” Bench, dated 15.07.2016 passedin ITA.No.1010/Mds/2011. Against the order of the Commissioner of Income Tax Appeals Vdated 24.03.2011 in ITA No.557/2008-2009.Against the order of the Commissioner of Income Tax Appeals Vdated 24.08.2011 in ITA No.471/2009-10. Against the Office of the Assistant Commissioner of Income TaxCompany circle VI(4) Chennai, dated 21.12.2009 PAN/GIRNo.AAACS-8779D for the assessment year 2003-2004. Against the order of the Office of the Assistant Commissionerof Income Tax Company Circle VI(4) dated 31.12.2008.GIR/PANAAACS8779D for the assessment year 2005-2006. For Appellant :Mr.J.Narayanaswamy(in all the appeals) Senior standing counsel C O M M O N J U D G M E N T(Judgment of the Court was delivered by N.KIRUBAKARAN, J) These Tax Case Appeals have been preferred by theRevenue against the order dated 15.07.2016 passed inITA.No.956, 1009 & 1010/Mds/2011 on the file of the Income TaxAppellate Tribunal, Chennai 'D' Bench for the assessment years2005-06, 2003-04 & 2005-06 respectively. 2.ITA No.956/Mds/2011 has been filed by the assesseeand ITA Nos.1009 & 1010/Mds/2011 have been filed by therevenue. The Tribunal has allowed the assessee's Appeal andpartly allowed the revenue's Appeals. Against which thepresent Appeals have been filed.3.TCA.No.169 of 2018 was admitted on 10.04.2018 on thefollowing substantial question of law :“Whether the loss of one unit can be set off againstthe profit of other units for the purpose ofdeduction under Section 80IB of the Income Tax Act,1961?"4.TCA.Nos.170 & 171 of 2018 were admitted on10.04.2018 on the following substantial questions of law :“Whether the Tribunal erred in law in holding thatthe assessee was entitled to deduction of interest onfunds borrowed for the purpose of the assessee'sbusiness, when the funds so borrowed were advanced tothe wholly owned subsidiary of the assessee?" 5.Mr.J.Narayanaswamy, learned Senior Standing Counselappearing on behalf of the appellant would submit that the taxeffect in these cases are less than Rs.1 crore and is coveredby Circular No.17/2019 dated 08.08.2019 issued by theDirector, Central Board of Direct Taxes, Department ofRevenue, Ministry of Finance, Government of India, Delhi. Asper the said circular, the monetary limit to file an appealbefore the High Court is fixed at Rs.1 crore. In these cases,tax effect is less than Rs.1 crore and therefore, these caseshave to be dismissed. 6.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the said Circular, which prescribes monetary limit for filing appeal is usefully extracted as follows: 2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para3 of the Circular mentioned above and accordingly,the table for monetary limits specified in Para 3of the Circular shall read as follows: 6.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the said Circular, which prescribes monetary limit for filing appeal is usefully extracted as follows: 2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para3 of the Circular mentioned above and accordingly,the table for monetary limits specified in Para 3of the Circular shall read as follows: 7.In view of the submissions made by the learnedcounsel appearing on behalf of the appellant and also in viewof the Circular No.17/2019 dated 08.08.2019 issued by theDirector, Central Board of Direct Taxes, Delhi, these Tax CaseAppeals are dismissed on account of tax effect. However, thesubstantial questions of law framed is left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeals to be heard and decidedon merits. No costs. Sd/- Assistant Registrar(CCC) To 1.The Commissioner of Income Tax, Chennai. Chennai. 2.Income Tax Appellate Tribunal 'D' Bench, Chennai. Chennai. 3.The Commissioner of Income Tax Appeals V Chennai. Chennai. 4.The Commissioner of Income Tax Company Circle VI(4) Chennai. Chennai. +1cc to Mr.J.Narayanaswamy, Advocate SR.101303.+1cc to M/s.Subbaraya Aiyar, Advocate SR.101583 MG(CO)CB(10/01/2020) T.C.A.Nos.169 to 171 of 2018