Commissioner Of Income Tax Iitiruchirapalli v. M/S.talco Trichy Tannery Effluent Co (Talco)Tanners Mansion

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 9.1.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.1479 of 2010 Commissioner of Income Tax IITiruchirapalli. ...Appellant Vs. M/s.Talco Trichy Tannery Effluent Co (TALCO)Tanners Mansion,No.257, Pudukottai Road, Sambattu, Tiruchirapalli 620 007. ...RespondentTax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 19.3.2010 made in ITANo.1680/Mds/2009 and against the order of the Commissioner ofIncome Tax (Appeals)- III, Chennai - 34, dated 08/07/2009 andmade in ITA Nos.745,750 & 753 to 756/08-09/A-III, against theorder of the Income Tax Officer, Company Ward-III, Chennai -34,dated 21.03.2005 for the Assessment Year 2002-2003. For Appellant : Mr.M.Swaminathan Senior Standing Counsel For respondent : Dr.A.Thyagarajan, Senior Counsel for Mr.S.Rameshkumar This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'D' Bench, Chennai, dated 19.3.2010 madein ITA No.1680/Mds/2009, by raising the following substantialquestion of law: "Whether on the facts and in the circumstances ofthe case the Income Tax Appellate Tribunal was rightin holding that the interest on fixed deposits and https://hcservices.ecourts.gov.in/hcservices/ mobilization advances was not assessable on theground that those were adjusted against theconstruction cost, contrary to the ratio of theSupreme Court's decision in the case of TuticorinAlkalie Chemicals and Fertilizer Ltd. v. C.I.T. (227ITR 173)?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. ssk. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar To1. The Commissioner of Income Tax II Tiruchirapalli. 2. The Deputy Commissioner of Income Tax, Circle IV, No.44, Williams Road, Cantonment, Trichy 620 001. 3. The Commissioner of Income Tax (Appeals)-III, No.121, Mahatma Gandhi Road, Chennai - 34. 4. The Income Tax Officer, Company Ward - III, Chennai -34. 5. The Registrar, Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai. TCA No.1479 of 2010 Kak(11/03/2019)