Commissioner Of Income Tax -I, Chennai v. M/S.india Pistons Ltd., Chennai-11

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.1057 of 2010 Commissioner of Income Tax-I, Chennai...AppellantVsM/s.India Pistons Ltd., Chennai-11 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 30.4.2010 made in ITA.No.211/Mds/2010 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 1992-93 against the Order of theCommissioner of Income Tax (Appeals)-III, Chennai -34, dated30.11.07, made in ITA No.63/07-08/A.III, against the AssistantCommissioner of Income Tax,Company Circle-II (3),V Floor, NewBlock, Chennai -34, dated 20.03.07 made in No.IX1-023-AAACI1439E/1992-93, Assessment Year 1992-93. For Appellant :Mr.Karthik Ranganathan, SSCFor Respondent:Mr.R.Venkata Narayanan forM/s.Subbaraya Aiyer PadmanabhanJudgment was delivered by T.S.Sivagnanam,J We have heard Mr.Karthik Ranganathan, learned Senior StandingCounsel appearing for the appellant – Revenue and Mr.R.VenkataNarayanan, learned counsel for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated30.4.2010 made in ITA.No. 211/Mds/2010 on the file of the IncomeTax Appellate Tribunal, Chennai 'D' Bench for the assessmentyear 1992-93.3. The appeal was admitted on 09.11.2010 on the followingsubstantial question of law : “Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in confirmingthe order of the Commissioner of Income Tax(Appeals)deletingtheadditionof https://hcservices.ecourts.gov.in/hcservices/ Rs.21,26,947/- representing the investmentallowance withdrawn as per the order of theAssessing Officer under Section 155(4A) eventhough the assessee had not utilized theinvestment allowance reserve for theacquisition of new plant and machinery asstipulated under Sub-Section (4) of Section32A?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is 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 this case is lessthan the threshold limit. 5. In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs.RS Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant RegistrarTo1.The Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai. 2. The Commissioner of Income Tax (Appeals)-III, No.121,M.G.Road, Chennai -34, 3. The Assistant Commissioner of Income Tax,Company Circle-II (3),V Floor, M.G.Road, Chennai- 34.+1cc to Mr.Subbaraya Aiyar Padmanabhan, Advocate, SR.No.70478/19 TCA.No.1057 of 2010 Kak(31/10/2019)