Commissioner Of Income Tax-I,Tiruchirapalli v. M/S.the Standard Textiles,Post Box

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.618 of 2011 Commissioner of Income Tax-I,Tiruchirapalli... Appellant -vs- M/s.The Standard Textiles,Post Box No.78,Balajinagar, Semmadai,Salem Main Road, Karur... Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 22.06.2011, made in I.T.A.No.548/Mds/2011 on thefile of the Income Tax Appellate Tribunal Bench 'A', Chennai forthe assessment year 2005-06, and against the orderdt.25/1/2011 , of the commissioner of Income Tax(Appeals),Trichyfortheassessmentyear2005-06,inG.I.NO/PA.NO.AAAFT1844M, and as against the order dt.3/12/07 ofthe Deputy Commissioner of Income Tax Tricy, for the assessmentyear 2005-06. For Appellant:Mr.M.Swaminathan, Senior Standing Counsel:assisted by Ms.V.Pushpa Standing Counsel For Respondent:Mr.A.S.Sriraman For Mr.S.Sridhar ******JUDGMENT(Delivered by T.S.Sivagnanam, J.) This appeal filed by the Revenue under Section 260A of theIncome Tax Act, 1961 is directed against the order dated22.06.2011, made in I.T.A.No.548/Mds/2011 on the file of the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal Bench 'A', Chennai for theassessment year 2005-06. 2.The above appeal was admitted on 25.01.2012, on thefollowing substantial question of law:-“Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasrightindeletingthedisallowanceofRs.76,00,000/- being depreciation claimed by theassessee on the cost of the wind mill, which wasonly installed during the relevant previous year,but had not been used for generation of power andsupply to the Tamil Nadu Electricity Board Gridwhich in any case would not have been possiblewithout commissioning of the 22KV Enercon Feederwhich was erected only in the subsequent year?” 3.Heard Mr.M.Swaminathan, learned Senior Standing Counselassisted by Ms.V.Pushpa, learned Standing Counsel for theappellant – and Mr.A.S.Sriraman, learned counsel forMr.S.Sridhar, learned Counsel for the respondent. 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.17/2019,dated 08.08.2019 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 question of law framed is 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. abr 2 To 1.The Income Tax Appellate Tribunal Bench 'A', Chennai. 2.The Commissioner of Income Tax(Appeals) Trichy. Trichy. 3.The Deputy Commissioner of Incometax, Circle-II, Trichy. Circle-II, Trichy. +1cc to Mr.S.Sridhar, Advocate SR.72491 +1cc to Mr.M.Swaminathan, Advocate SR.73013 SVI(CO)CB(18/11/2019) T.C.A.No.618 of 2011 3