Commissioner Of Income Tax Salem v. M/S.sree Uma Parameswari Mills Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 6.9.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Commissioner of Income Tax Salem ... AppellantVs. M/s.Sree Uma Parameswari Mills Ltd.,5/119, 2nd Street, State Bank Colony,P.B.No.402, Salem 636 004. ... Respondent Tax Case filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal, 'D'Bench, Chennai, dated 20.5.2005 made in ITA No.522/Mds/1999. Against the order of the Commissioner of Income Tax Appeals– VII, Chennai dated 30.12.1998 and made in ITA.No.508C/1998-1999 for the Assessment year 1995-1996. against the order of the Deputy Commissioner of Income Tax,Special Range, Salem-7, dated 30.03.1998 in PAN/GIR/No.47-012-CV-0437. For Appellant : Mr.M.Swaminathan Senior Standing Counsel assisted by Ms.V.Pushpa, Jr.Standing CounselFor Respondent : No appearance. J U D G M E N T(Delivered by DR.VINEET KOTHARI,J) This Tax Case has been filed by the Revenue, calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'D' Bench, Chennai, dated 20.5.2005 made inITA No.522/Mds/1999, for the Assessment Year 1995-1996, byraising the following substantial question of law: https://hcservices.ecourts.gov.in/hcservices/ "Whether, on the facts and in the circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that expenditure on replacement ofold machinery by purchase and installation of newmachinery was allowable as revenue expenditure?" 2. When the matter is taken up for hearing, learned SeniorStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). 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effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed, as withdrawn, keeping open thesubstantial question of law for determination in appropriatecases. No costs. Sd/- Assistant Registrar(CCC)//True Copy// Sub Assistant Registrar ssk To 1. The Commissioner of Income Tax Salem 2. Income Tax Appellate Tribunal, 'D' Bench, Chennai. 3. The Commissioner of Income Tax, Appeals VII, Chennai-34. 4. Deputy Commissioner of Income Tax, Special Range, Salem-7. Tax Case No.1171 of 2008 BP(CO)CS/03/11/2020