Commissioner Of Income Tax I, Chennai v. M/S.automotive Ancillary Services P. Ltd., Chennai-20

In the High Court of Judicature at MadrasDated : 21.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.41 & 42 of 2012 & MP.No.1 of 2012 Commissioner of Income Tax I,Chennai ...Appellant in both AppellateVs M/s.Automotive Ancillary ServicesP. Ltd., Chennai-20. ...Respondent in both Appeals APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 03.8.2011 made in ITA.Nos.491 &492/Mds/2011 on the file of the Income Tax Appellate Tribunal,Chennai 'C' Bench respectively for the assessment years 2004-05and 2005-06, against the order of the Commissioner of IncomeTax, Chennai-1, Chennai-34, dated 08/02/2011 in C.No.218(17)/263/2010-11, for the assessment year 2004-05 & 2005-06 andagainst the order of the Appellate Tribunal, Chennai Bench 'D'Chennai, dated 07/07/2009 in ITA.No.434 & 435/Mds/09. And agaistthe order of the Commissioner of Income Tax, Chennai-I, Chennai,dated 25/03/2009 in C No.218/CIT-I/49 & 50/263/2008-09, andagainst the order of the Assistant Commissioner of Income Tax,Company Circle 1(1), Chennai, and against Income Tax Officer(OSD) Company Circle 1(4), Chennai, dated 30.11.2007 and22.11.2006 for the assessment year 2004-05 and 2005-06respectively. For Appellant : Mr.T.Ravikumar, SSC and Mrs.R.Hemalatha, SSC in both AppealsFor Respondent : Mr.A.S.Sriraman for M/s.S.Sridhar in both Appeals COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J)We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Mr.A.S. Sriraman, learned counsel appearing for therespondent – assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 03.8.2011 made in ITA.Nos.491 & 492/Mds/2011 on the fileof the Income Tax Appellate Tribunal, Chennai 'C' Benchrespectively for the assessment years 2004-05 and 2005-06. 3. The appeals were admitted on 06.3.2012 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in settingaside the order of the Commissioner ofIncome Tax under Section 263 for theassessment years 2004-05 and 2005-06 statingthat the Commissioner of Income Tax hadwrongly assumed jurisdiction under Section263 since the Assessing Officer had takenonly one of the possible views regarding theeligibility of the assessee for deductionunder Section 80IB ? andii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in ignoring theprovisions of Clause of Section 80IB(14) ofthe Income Tax Act, which defines a smallscaleindustrialundertakingasanindustrial undertaking, which, as on thelast day of the previous year, is regardedas a small scale industrial undertakingunder Section 11B of the Industries(Development and Regulations) Act 1951 andthe factual details given by theCommissioner of Income Tax to establish thatthe assessee had not satisfied theconditions for the assessment years inquestion ?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the event 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the event https://hcservices.ecourts.gov.in/hcservices/ the tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. Consequently, the connectedMP is also dismissed. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar RsTo 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax Chennai, Chennai-34.3.The Income Tax Appellate Tribunal, Chennai D Bench, Chennai. 4.The Assistant Commissioner of Income Tax, Company Circle1(1)Chennai. 5.The Income Tax Officer(OSA) Company Circle 1(4), Chennai. +1 cc to M/s.S.Sridhar, Advocate Sr.No. 71127 TCA.Nos.41 & 42 of 2012and MP.No.1 of 2012 BP(CO)RMP(02/12/2020)