Commissioner Of Income Tax Ichennai v. M/S. Lucas Tvs Ltd.,Padi, Chennai 600 050

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 29.11.2021 CORAM : THE HON'BLE MR. JUSTICE R. MAHADEVANAND THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.632 of 2009 Commissioner of Income Tax IChennai.... Appellant Versus M/s. Lucas TVS Ltd.,Padi, Chennai 600 050.PAN No. ... Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, “B” Bench, dated 02.02.2009 inI.TA.No.2520/Mds/07 against the order of the Commissioner ofIncome Tax (Appeals)-III, Chennai-34 dated 27.09.2007 made inITA No.774/2006-07/AIII and against the order of theAdditional Commissioner of Income Tax, Company Range II,Chennai-34 dated 29.12.2006 in PAN/GIR No. for theAssessment Year 2004-05. For Appellant : Mr.Karthik RanganathanFor Respondent: Mr.Subbaraya Aiyar (Judgment was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant /Revenue, calling in question the correctness of the orderdated 02.02.2009 passed by the Income Tax Appellate Tribunal,'B' Bench, Madras, in I.T.A.No.2520 /Mds/07, relating to theassessment year 2004-05. 2.On 27.07.2009, this court admitted the aforesaid appealon the following substantial questions of law:- “(i) Whether on the facts and circumstances ofhttps://hcservices.ecourts.gov.in/hcservices/the case, the Tribunal was right in holding that the receipts from sale of scrap will not form part oftotal turnover for the purpose of benefit of section80 HHC without going into the question of the natureof scrap? (ii) Whether on the facts and circumstancesof the case, the Appellate Tribunal was right inholding that the deduction under Section 80HHC isto be allowed without deducting the deductiongranted under Section 80IB? (iii) Whether on the facts and circumstancesof the case, the Appellate Tribunal was right inlaw in ignoring the specific provisions of 80IA(9)read with 80IB(13) which forbids deduction to theextent of the profits allowed under Section 80IBunder any other provisions of Chapter VIA?” 3. When the matter was taken up for consideration, thelearned counsel for the appellant / Revenue brought to thenotice of this court the Circular No.17/2019 dated 08.08.2019issued by the Central Board Direct Taxes, wherein, it isstipulated that appeal 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). It isalso submitted that the tax effect in this appeal is less thanthe threshold limit. 4. In the light of the aforesaid submissions made by thelearned counsel for the appellant / Revenue, the presentappeal, wherein, the tax effect is said to be less than themonetary limit imposed, is dismissed as withdrawn, keepingopen the substantial questions of law for determination in anappropriate case. No costs. //True Copy// Sd/-Assistant Registrar (CS-VIII) avTo 1.The Commissioner of Income Tax I, Chennai. Chennai. 2.The Income Tax Appellate Tribunal, Madras, “B” Bench. 3.The Commissioner of Income Tax (Appeals) III, https://hcservices.ecourts.gov.in/hcservices/ Chennai – 34. 4.The Additional Commissioner of Income - tax, Company Range II, Chennai. +1cc to Mr.T.Ravi Kumar, Senior Standing Counsel for IncomeTax, SR. No. 61727+1cc to Mr.Subbaraya Aiyar, Advocate SR. No.61687 T.C.A.No.632 of 2009 AJS (CO)PR (13/12/2021)