Commissioner Of Income Taxchennai v. M/S.covanta Madurai Operating Pvt Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.12.2019 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.610 of 2010 Commissioner of Income TaxChennai....Appellant Vs. M/s.Covanta Madurai Operating Pvt Ltd.,No.101 (Old No.42/1), 4[th] Main RoadGandhi Nagar, Adyar, Chennai-600 020....Respondent----- Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Madras 'A' Bench, Chennai, dated 04.12.2009 made inITA No.464/Mds/2007,PAN.No.AAA.CO.5538L for the Assessmentyear 2002-03, and against the commissioner of Income Tax(A)-III, Chennai-34, dated 18/12/2006. Made in I.T.A.No.199/2006-07/A.III, PAN/No.AAA CO 5538L for the Assessment year 2002-03. ----- For Appellant : Mr.T.Ravikumar, Senior Standing Counsel For Respondent : Mr.M.Kaushik for Mr.S.Sridhar J U D G M E N T(Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'A' Bench, Madras, by raisingthe following substantial question of law: "Whether the Tribunal was right in deleting thepenalty under Section 271(1)(c) in spite of thefact that the assessee has claimed the deduction 1 https://hcservices.ecourts.gov.in/hcservices/ under Section 80 IA in gross violation of theconditions for claiming the deduction?” 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.3/2018 dated 11.7.2018 wherein it is stipulatedthat appeals shall not be filed/pursued by the Departmentbefore the High Court in cases where the tax effect does notexceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appealfiled by the Revenue is dismissed as not pressed, keeping openthe substantial questions of law for determination in anappropriate case. Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant Registrar KSTTo 1.The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai. 2.The Commissioner of Income Tax(A)-III, 121, Mahatma Gandhi Road, Chennai-34. 3.The Assistant Commissioner of Income Tax, Company Circle(3), Chennai. +1cc to Mr.S.Sridhar, Advocate SR.100554+1cc to Mr.T.Ravikumar, Advocate SR.100578 AD(CO)CB(07/01/2020) 2