Commissioner Of Income Tax,Circle-I, Virudhunagar v. M/S.madras Cements Limited

In the High Court of Judicature at Madras Dated : 28.08.2019Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.427 of 2018 Commissioner of Income Tax,Circle-I, Virudhunagar. ...Appellant/Appellant Vs M/s.Madras Cements Limited,C/o.Jagadisan & Co.Chartered Accountants,No.245, TTK Road, Residency Apartments,Alwarpet, Chennai - 600 018.PAN: ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 07.04.2017 made in ITA.No.1553/MDS/2006 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2002-2003 against the order of theCommissioner of Income Tax (Appeals) II, Madurai dated22.03.2006 made in I.T.A. 092/2005-2006 against the AssistantCommissioner of Income Tax Circle I, Virudhunagar dated28.03.2005 made in PAN/GIR No. /M-117 Assessment year2002-2003. For Appellant: Mr.M.Swaminathan, SSC and Ms.V.Pushpa, SC For Respondent: Mr.P.J.Rishikesh JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Ms.V.Pushpa, learned Standing Counsel appearing forthe appellant/revenue and Mr.P.J.Rishikesh, learned counselappearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated07.04.2017 made in ITA.No.1553/MDS/2006 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for theassessment year 2002-2003. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 21.06.2019 on the followingsubstantial question of law :“Whether the Tribunal was right in holding thatthe expenditure incurred by the assessee forconversion of Meter Gauge Railway siding to BroadGauge Railway siding is allowable expenditure whenthe same is not a business expenditure but capitalin nature?” 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.17/2019dated 08.8.2019 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. s/d- Assistant Registrar(CS V) True Copy Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2.The Commissioner of Income Tax (Appeals)IIMadurai 625 002.Madurai 625 002. 3.The Assistant Commissioner of Income Tax Circle I, Virudhunagar+1 CC to Mr.P.J.Rishikesh, Advocate sr 74468. TCA.No.427 of 2018 VGII(CO)SP(05/11/2019)