Commissioner Of Income Tax Circle I, Madurai v. M/S.l.s.mills Limited, Post Box

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 10.01.2020 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN andTHE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.699 of 2018 Commissioner of Income TaxCircle I,Madurai ... AppellantVs M/s.L.S.Mills Limited,Post Box No.12, Madurai Road,TheniPAN: AAACL 3081 D ... Respondent PRAYER : Appeal under Section 260A of Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal, Madras“D” Bench, dated 15.03.2018 in ITA.No.1918/MDS/2018 againstintimation under Section 143(1) of the Income Tax Act 19612dated 01.03.2016 passed by the Assistant Commissioner of IncomeTax, CPC Bangalore for the assessment year 2015-2016 against PANAAACC3081D on thefile of the Assistant Commissioner of IncomeTax (CPC) dated 01.03.2016. For Appellant : Mr.M.Swaminathan Senior standing counsel For Respondent: Mr.J.Balachander (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This Tax Case Appeal has been preferred by the Revenueagainst the order dated 15.03.2018 in ITA.No.1918/CHNY/2018 onthe file of the Income Tax Appellate Tribunal, Chennai 'D' Benchfor the assessment year 2015-16. 2.Aggrieved against the order of the Commissioner of IncomeTax (appeals) directing the Assessing Officer to recompute theMAT credit given to the assessee, after taking into accountsurcharge at the rate of 10% and educational cess at the rate of https://hcservices.ecourts.gov.in/hcservices/ 3%, the Revenue has filed ITA.No.1918/MDS/2018, before theIncome Tax Appellate Tribunal. The Tribunal has rejected theplea of the Tribunal and dismissed the same. Against thedismissal order, the present appeal has been preferred by theRevenue. 3.Heard the parties. 4.The appeal is admitted on the following substantialquestions of law : “1.Whether the Income Tax Appellate Tribunal is rightin holding that the surcharge and education cessshould form part of the tax while computing the MATcredit given to the assessee u/s.115JAA? (ii)Whether the Income Tax Appellate Tribunal is rightin holding that the explanation 2 of Section 115JB todefine the meaning of tax for calculating book profitsliable to tax u/s.115JB can be extended to Section115JAA?" 5.Mr.M.Swaminathan, learned Senior Standing Counselappearing on behalf of the appellant would submit that the taxeffect in this case is less than Rs.1 crore and is covered byCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Department of Revenue, Ministryof Finance, Government of India, Delhi. As per the saidcircular, the monetary limit to file an appeal before the HighCourt is fixed at Rs.1 crore. In this case, tax effect is lessthan Rs.1 crore and therefore, the case has to be dismissed. 6.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the said Circular, which prescribes monetarylimit for filing appeal is usefully extracted as follows: 2.As a step towards further management of litigation,it has been decided by the Board that monetary limitsfor filing of appeals in income-tax cases be enhancedfurther through amendment in Para 3 of the Circularmentioned above and accordingly, the table formonetary limits specified in Para 3 of the Circularshall read as follows: 7.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, the Tax Case Appeal isdismissed on account of tax effect. However, the substantialquestions of law framed is left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs. s/d- Assistant Registrar(CS-III) True Copy Sub-Assistant Registrar saiTo1.The Commissioner of Income TaxCircle I, Madurai 7.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, the Tax Case Appeal isdismissed on account of tax effect. However, the substantialquestions of law framed is left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs. s/d- Assistant Registrar(CS-III) True Copy Sub-Assistant Registrar saiTo1.The Commissioner of Income TaxCircle I, Madurai 2.Income Tax Appellate Tribunal 'D' Bench, Chennai. 3.The Assistant Commissioner of Income Tax, CPC Bangalore +1 CC to Mr.M.Swaminathan, Advocate sr 2955.+1 CC to Mr.J.Balachander, advocate sr 2662. RGN(CO)SP(26/02/2020) https://hcservices.ecourts.gov.in/hcservices/