Commissioner Of Income Tax - I, Chennai v. M/S Arkay Leathers (P) Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated:14.02.2017 Coram: The Hon'ble Mr.Justice HULUVADI G.RAMESHANDThe Hon'ble Dr. Justice ANITA SUMANTH TAX CASE APPEAL No.122 of 2011 Commissioner of Income Tax - I,Chennai .. AppellantVersus M/s Arkay Leathers (P) Ltd106, G.S.T. Road, ChrompetChennai - 600 044 .. Respondent Tax Case Appeal file under Section 260-A of the Income TaxAct, 1961 against the order of the Income Tax Appellate Tribunal'A' Bench, Chennai dated 14th October 2010 passed inI.T.A.No.212/Mds/2010 preferred against the order dated02.11.2009 made in I.T.A.No.6/07-08/A on the file of theCommissioner of Income tax, (A)-III, Chennai, for the Assessmentyear 2003-04 and Against the order dated 12.02.2007 made in G.I.R.No.AX4-145/2003-2004, on the file of the Assistant Commissioner ofIncome Tax, Company Circle I(1), Chennai, and Against the order dated 29.03.2006 made in I.T.NS.65 onthe file of the Assistant Commissioner of Income Tax CompanyCircle-I(1), Chennai, for the Assessment year 2003-2004. For Appellant .. Mr.T.RavikumarFor Respondent .. Mr. R. Kumar for T.N. Seetharaman JUDGMENT The Tax Case Appeal filed by the Revenue calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, "C" Bench, Chennai dated 14th October 2010 https://hcservices.ecourts.gov.in/hcservices/ passed in I.T.A.No.212/Mds/2010 has been admitted on 14.09.2011for consideration of the following substantial questions of law: "1. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in confirming theorder of the Commissioner of Income Tax (Appeals)cancelling the order of the Assessing Officerunder Section 154 levying interest under Section234B of Rs.9,51,551/-? 2. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in not holding thatthe Assessing Officer had not levied any intereston the enhancement on account of the applicationof the Taxation Laws (Amendment) Act and the levyof interest under Section 234B was confined onlyto the enhancement of income consequent to setoff of negative profit on account ofmanufacturing activity against trading profit andexport incentive which in anyway had to be doneeven without applying the amendment provisions,on the basis of the Supreme Court's decision inthe case of IPCA Laboratories reported in 266 ITR521?" 2. Circular instruction issued by the Central Board ofDirect Taxes No.21/2015, dated 10.12.2015 stipulates thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceed Rs.20lakhs. In the instant case, the tax effect is less than themonetary limit imposed and the appeal is hence, dismissed asnot pressed, preserving the substantial questions of law fordetermination in an appropriate case. No costs. -s/d-Assistant Registrar(CSII) True Copy Sub-Assistant Registrar msrTo 1.The Income Tax Appellate Tribunal"A"bench, Chennai-34 https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (A)-IIIChennai 3.The Assistant Commissioner of Income TaxCompany Circle I(1) ChennaiCompany Circle I(1) Chennai +1 cc to Mr.T.N.Seetharaman Advocate sr 10014 +1 cc to Mr.T.Ravikumar Advocate sr 9356 TAX CASE APPEAL No.122 of 2011br(co)aa18/04/2017