Commissioner Of Income Tax-I, Coimbatore v. M/S.elgi Ultra Industries Ltd., Coimbatore

In the High Court of Judicature at Madras Dated : 15.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.448 of 2010 Commissioner of Income Tax-I, Coimbatore...Appellant/RespondentVsM/s.Elgi Ultra Industries Ltd.,Coimbatore...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 20.11.2009 made in ITA.No.1267/Mds/2009 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2006-07 against the order passed by theCommissioner of Income Tax (Appeals)-1, Coimbatore dated22.06.2009 made in A.No. 105/2008-2009 and against the orderpassed by the Assistant Commissioner of Income Tax, CompanyCircle 1(1) Coimbatore dated 15.09.2008 made in P.A. No.AAACE4566G. For Appellant:Mr.T.R.Senthilkumar, SSC &Ms.K.G.Usharani, SCFor Respondent:Mr.Arun PrasadJudgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel and Ms.K.G.Usharani, learned Standing Counsel appearingfor the appellant – Revenue and Mr.Arun Prasad, learned counselappearing for the respondent. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 20.11.2009 made in ITA.No.1267/Mds/2009on the file of the Income Tax Appellate Tribunal, Chennai 'B'Bench (for brevity, the Tribunal) for the assessment year 2006-07. 3. The appeal has been admitted on 07.6.2010 on the followingsubstantial question of law :“Whether, on the facts and in thecircumstances of the case, the Income Tax https://hcservices.ecourts.gov.in/hcservices/ Appellate Tribunal was right in allowing thebad debts written off in the books ofaccounts, even though the conditions laiddown under Section 36(1)(vii) read withSection 36(2) were not satisfied by theassessee?” 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. -s/d- Assistant Registrar True Copy Sub-Assistant Registrar To1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax(Appeals)-1Coimbatore 3.The Commissioner of Income TaxCompany Circle1(1)Coimbatore 4.The Assistant Commissioner of Income TaxCompany Circle 1(1) CoimbatoreCompany Circle 1(1) Coimbatore TCA.No.448 of 2010 BS(CO)SP(30/09/2020)