Commissioner Of Income Tax-Iii, Coimbatore v. M/S.shriram Knits, Tirupur

IN THE HIGH COURT OF JUDICATURE AT MADRAS Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.454 of 2009 Commissioner of Income Tax-III, Coimbatore...AppellantVsM/s.Shriram Knits, Tirupur. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961againsttheorderdated17.12.2008madeinITA.No.327/Mds/2007 on the file of the Income Tax AppellateTribunal, Madras 'A' Bench for the assessment year 2003-04against the order of the commissioner of Income TaxAppeals-II at Coimbatore dated 13.11.2006 against PANNO.AACF57982 C on the file of the Commissioner of IncomeTax (Appeals)-II,Coimbatore. For Appellant:Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, JSCFor Respondent:Mr.Niranjan Rajagopal Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned SeniorStanding Counsel, assisted by Ms.K.G.Usharani, learnedJunior Standing Counsel for the appellant – Revenue andMr.Niranjan Rajagopal, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 is directed against the orderdated 17.12.2008 made in ITA. No.327/Mds/2007 on the fileof the Income Tax Appellate Tribunal, Madras 'A' Bench forthe assessment year 2003-04. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 30.6.2009 on the followingsubstantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, theAppellate Tribunal was right in law inholding that the deduction underSection 80HHC is to be computed on thenet income after reducing the deductionallowed under Section 80IB of theIncome Tax Act, 1961 ? andii. Whether, on the facts and in thecircumstances of the case, theAppellate Tribunal was right in law inignoring the specific provision viz.Section 80IA(9) read with Section 80IB(13), which forbidden deduction to theextent of profit allowed under Section80IB under any provision of ChapterVIA?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenueon account of the low tax effect in terms of CircularNo.17/2019 dated 08.8.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 Crore. It is further submitted that thetax effect in this case is less than the threshold limit. 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect.The substantial questions of law framed are left open. Inthe event the tax effect is above the threshold limit fixedin the said circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeal to beheard and decided on merits. No costs. ToTHE INCOME TAX APPELLATE TRIBUNAL, MADRAS 'A' BENCH. https://hcservices.ecourts.gov.in/hcservices/ 2.THE COMMISSIONER OF INCOME TAX APPEALS-II AT COIMBATORE 3.THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLEI,TIRUPPURI,TIRUPPUR +1cc to Mr.T.R.Senthilkumar , Advocate SR.No. 69900TCA.No.454 of 2009 A.SK(17/09/2019)