Commissioner Of Income Tax-I,Tiruchirapalli v. M/S.sri Rama Vilas Weaving Factorsf

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.93 of 2011 Commissioner of Income Tax-I,Tiruchirapalli.... Appellant/Respondent -vs- M/s.Sri Rama Vilas Weaving FactorSF No.2262, Puri Nagar,Chinna Anandan Koil St.,Karur - 639 002.... Respondent/Appellant Tax Case (Appeal) filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income-tax AppellateTribunal, “C” Bench, Chennai, dated 08.10.2010, passed inI.T.A.No.1153/Mds/2009 for the assessment year 2005-06. and thusappeal preferred agianst the order dated 07.05.2009 made inITA.No. 147/2007-2008 on the file of the commissioner of IncomeTax (Apppeals) 44 Williams road, Contonment, Tiruchirapalli, andthus appeal preferred against the Order dated 23.11.2007 madein PAN.No.AABR 56/90C for the Assessment Year 2005-2006, CircleII Trichy on the file of the Deputy Commissioner of Income TaxCircle II, No.44, Williams Road, Tiruchirapalli. For Appellant:M/s.R.Hemalatha/Mr.T.Ravi KumarSenior Standing Counsel This appeal by the appellant/Revenue is directed againstthe order of the Income-tax Appellate Tribunal, “C” Bench,Chennai, dated 08.10.2010, passed in I.T.A.No.1153/Mds/2009 forthe assessment year 2005-06. https://hcservices.ecourts.gov.in/hcservices/ 2.Heard M/s.R.Hemalatha, learned Senior Standing Counselfor the appellant/Revenue and Mr.V.S.Jayakumar, learned counselfor the respondent/assessee. 3.This Appeal has been admitted on 15.03.2011, on thefollowing substantial question of law:- “Whether on the facts and circumstancesof the case, the Income Tax Appellate Tribunalwas right in holding that the assessee wasentitled for depreciation at the rate of 80%applicable to windmills even on the electricalfittings and civil work, on which depreciationwas allowable only at the rate of 10%?” 4.We have perused the Order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Question of Law, framed forconsideration, is left open. No costs. The Revenue is atliberty to seek for restoration of appeal if at a later point oftime, it is found that the tax effect is above the thresholdlimit or to fall under the exceptional clauses mentioned in theCircular. Sd/- Assistant Registrar //True Copy// cse Sub Assistant Registrar To 1.The Income-tax Appellate Tribunal, “C” Bench, Chennai. 2.The Commissioner of Income Tax (Appeals), No.44, Williams Road, Tiruchirapalli. No.44, Williams Road, Tiruchirapalli. 3.The Deputy Commissioner of Income Tax, Circle II, No.44, Williams Road, Tiruchirapalli. Circle II, No.44, Williams Road, Tiruchirapalli. +1cc to Mr.R.S.Jaya Kumar, Advocate, S.R.No. 80616+1cc to Mr.T.Ravi Kumar, Senior Standing Counsel for Income Tax Department, S.R.No. 80605+1cc to Mr.T.Ravi Kumar, Senior Standing Counsel for Income Tax Department, S.R.No. 80605 Tax Case (Appeal) No.93 of 2011 KJ(CO)GN(07/01/2019)