Commissioner Of Income Tax Coimbatore v. M/S.eveready Spinning Mills P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 12.02.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case No.555 of 2013 Commissioner of Income TaxCoimbatore...Petitioner/RespondnetVs. M/s.Eveready Spinning Mills P Ltd.,23, Jothi Theatre Road, Tirupur-641 601. ...Respondent/Appellant ----- Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the common order of the Income Tax AppellateTribunal 'D' Bench, Chennai dated 30.11.2011 in ITANo.1571/Mds/2011.-----For Appellant : Mr.T.R.Senthil Kumar Senior Standing CounselFor Respondent : Mr.R.Sivaraman J U D G M E N T (Judgment of the Court was delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'D' Bench, Madras, by raising thefollowing substantial question of law: "1.Whether under the facts and in the circumstancesof the case, the Hon'ble Income Tax AppellateTribunal right in law in holding that profits of thewindmill for the purpose of computing deductionunder Section 80IA is to be determined on the basisof annual landing cost of electricity purchased bythe assessee from Tamil Nadu Electricity Board? 2. Whether under the facts and in the circumstances Page 1 of 3 https://hcservices.ecourts.gov.in/hcservices/ of the case, the Hon'ble Income Tax AppellateTribunal was right in law in holding that the priceof Rs.2.70 per unit at which the assessee sold itspower to Tamil Nadu Electricity Board cannot beequated with market rate as understood for thepurpose of Section 80IA(8)? 3. Whether under the facts and in the circumstancesof the case, the Hon'ble Income Tax AppellateTribunal was right in holding that the price ofRs.3.50 per unit at which the assessee purchases theelectricity from Tamil Nadu Electricity Boardcorresponds to market value, in computing deductionunder Section 80IA?” 2. When the matter was taken up for hearing, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial questions of law for determination in an appropriatecase. To 1.Income Tax Appellate Tribunal 'D' Bench,Chennai.2.The Commissioner of Income TaxeCoimbatore 3.The Commissioner of Income Tax(Appeals)-IICoimbatore4.The Deputy Commissioner of Income tax Company Circle Tiruppur Page 2 of 3 +1 cc to Mr.T.R.Senthil kumar Advocate sr11665 T.C.(A) No.555 of 2013 nmi(co)aa10/03/2020 Page 3 of 3 https://hcservices.ecourts.gov.in/hcservices/