Commissioner Of Income Tax Coimbatore v. M/S.the Salisbury Industrial Cooperative Tea Factory Ltd., Gudalur, Nilgiris

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 13.2.2020 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) Nos.73 to 78 of 2013 Commissioner of Income Tax Coimbatore.AppellantVs. M/s.The Salisbury Industrial Cooperative Tea Factory Ltd.,Gudalur, Nilgiris.Respondent Tax Cases filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,'C' Bench, Chennai, dated 25.5.2012 made in ITA Nos.243 to248/Mds/2012. Appeal filed against the order of theCommissioner of Income Tax (Appeals)1 Coimbatore dated21.10.2011 in Appeal Nos.253,254,255,256,257,258/10-11 againsthe Assessment order for the year 2008-2009 made in PAN GIRNo:AAAA73695/F, for the year 2007-08 for the year 2006-2007,for the year 2005-2006, for the year 2004-2005 and for theyear 2003-2004, dated 31.12.2010 on the file of Income TaxOfficer, Ward I(1) Otacamund. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Mr.M.P.Senthilkumar J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) These Tax Cases have been filed by the Revenue, callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'C' Bench, Chennai, dated 25.5.2012made in ITA Nos.243 to 248/Mds/2012, for the Assessment Years2003-2004 to 20008-2009, by raising the following substantialquestions of law:"(i) Whether under the facts and circumstances of 1 https://hcservices.ecourts.gov.in/hcservices/ the case, the Income Tax Appellate Tribunal wasright in holding that the assessee Societyeligible for availing the benefits of deductionunder Section 80P(2)(a)(iii) of the Income TaxAct? (ii) Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that the assessee Society iseligible for deduction when the assesseemanufactures black tea powder out of green tealeaves grown by its members, which has differentshape, texture and use? (iii) Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that the assessee Society iseligible for deduction even though it is usingpower in producing the black tea powder?" 2. When the matters are taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant cases, the tax effect is said to beless than the monetary limit imposed and therefore, theAppeals filed by the Revenue are dismissed, as withdrawn,keeping open the substantial questions of law fordetermination in appropriate cases. No costs. Sd/- Assistant Registrar(CS-II-MDU) //True Copy// Sub Assistant Registrarssk.To 1.The Commissioner of Income Tax Coimbatore.2.The Income Tax Appellate Tribunal, 'C' Bench, Chennai.3. The Income Tax Officer, Ward I (1), Ooty. 4. The Additional Commissioner of Income Tax Range IV Race Course Road, Coimbatore-641 018. Range IV Race Course Road, Coimbatore-641 018. +1cc to Mr.T.R.Senthilkumar, Advocate SR.12156 +1cc to Mr.G.Baskar, Advocate SR.12028 KS(CO)CB(17/06/2020) 3