Commissioner Of Income Tax Ii v. M/S.kh Leather Industries Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 27.08.2019 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.768 of 2015 Commissioner of Income Tax II,121, Nungambakkam High Road,Chennai - 600 034. ...Appellant/ Appellant Vs M/s.KH Leather Industries Pvt. Ltd.,206, Aryas, Periyar EVR High Road,Kilpauk, Chennai - 600 010.PAN: ...Respondent/ Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 18.02.2015 made in ITA.No.2828/MDS/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2006-07 Against the order of theCommissioner of Income Tax Appeals II, chennai 34 dated27.06.2014 and made in ITA.NO.922/2013-2014 for the AsessmentYear 2006-07.Against the order of the Commissioner of Income officer(OSD),Company Cirlce II(4)(i/c) Chennai 34 dated 03.12.2008 andmade in GIR/PAN: AAACK1425CAssessment Year 2006-2007. For Appellant: Mr.Karthik Ranganathan, SSC assisted by Mr.S.RajeshFor Respondent: Mr.S.Sridhar We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel, assisted by Mr.S.Rajesh, learned StandingCounsel appearing for the appellant/revenue. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated18.02.2015 made in ITA.No.2828/MDS/2014 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for theassessment year 2006-07. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 28.09.2015 on the followingsubstantial questions of law :“(i) Whether on the facts and in thecircumstances of the case, the Tribunal wasright in granting deduction under Section 10B ofthe Act, when the assessee used more than 20% ofthe old machineries by splitting andreconstructing in the new unit? and (ii) Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in dismissing theDepartment's appeal, when similar issue for theearlier year is pending before the High Court?" 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 questions of law framed are 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. Sd/- Assistant Registrar(insp cell) cse To1.THE INCOME TAX APPELLATE TRIBUNAL, CHENNAI 'A' BENCH. 2.THE COMMISSIONER OF INCOME TAXII,121, NUNGAMBAKKAM HIGH ROAD, CHENNAI 34 https://hcservices.ecourts.gov.in/hcservices/