Commissioner Of Income-Tax,Chennai v. M/S.subrahmanyan Construction Co. Pvt. Ltd

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.525 of 2014 Commissioner of Income-tax,Chennai... Appellant -vs- M/s.Subrahmanyan Construction Co. Pvt. Ltd.,C/o. Shri T N Seetharman, Advocate,384, (Old No.196), Lloyds Road,Chennai-600 086... Respondent APPEAL under Section 260A of the Income Tax Act, 1961againsttheorderdated22.01.2013,madeinI.T.A.No.1886/Mds/2012 on the file of the Income TaxAppellate Tribunal 'C' Bench, Chennai for the assessmentyear 2007-08 against the order of the Income Tax Appeals V,ITA.NO.487/2009-2010dated29/08.2012againsttheAssessment order of Additional commisioner of Incoem Tax ,Company Range VI dated 30.12.2009 PAN AAFCS 3911AAssessment Year 2007-2008. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel For Respondent :Mr.R.Kumar******JUDGMENT (Delivered by T.S.Sivagnanam, J.)This appeal filed by the Revenue under Section 260A ofthe Income-tax Act, 1961 is directed against the order https://hcservices.ecourts.gov.in/hcservices/ dated 22.01.2013, made in I.T.A.No.1886/Mds/2012 on thefile of the Income Tax Appellate Tribunal 'C' Bench,Chennai for the assessment year 2007-08. 2.The above appeal was admitted on 29.10.2014, on thefollowing substantial questions of law:-“(i) Whether in the facts andcircumstances of the case, the Tribunal wasright in holding that the project completionmethod of accounting adopted by the assesseeis correct in law for the work-in-progress ofconstruction activities carried by theassessee? and(ii) Whether in the facts andcircumstances of the case, the Tribunal wasright in holding that the percentagecompletion method of accounting introduced bythe Accounting Standard 7 with effectfrom 7.12.2006 is not applicable to theassessee for the assessment year 2007-2008?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned StandingCounsel for the appellant – and Mr.R.Kumar, learned counselfor the respondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenueon account of the low tax effect in terms of CircularNo.17/2019, dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 Crore. It is further submitted that thetax effect in this case is less than the threshold limit. 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect.The substantial questions of law framed are left open. Inthe event the tax effect is above the threshold limit fixedin the said circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeal to beheard and decided on merits. No costs. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar abr To 1.The Commisioner of Income Tax, chennai 2.The Income Tax Appellate Tribunal 'C' Bench, Chennai. 3.The Commisioner of Income Tax Appeals V,Chennai 34 4.The Additional Commisioner of Income Tax, Company Range VI, chennai 34.Company Range VI, chennai 34. +1cc to Mr.T.R.Senthil kumar , Advocate SR.No. 72912 +1cc to Mr.T.N.Sethuraman, Advocate SR.No. 72484 A.SK(25/11/2019) T.C.A.No.525 of 2014