Commissioner Of Income Tax,Coimbatore v. M/S.chiranjeevi Wind Energy Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Commissioner of Income Tax,Coimbatore... Appellant/ Respondent -vs- M/s.Chiranjeevi Wind Energy Ltd.,No.45/3A, Arts College Lane,Opp: Bala Lodge,Coimbatore-641 018. .. Respondent/ Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 21.10.2013, made in I.T.A.No.342/Mds/2013 on thefile of the Income Tax Appellate Tribunal 'C' Bench, Chennai forthe assessment year 2009-10 as against the Order of theCommissioner of Income Tax, dated 04.12.12 in ITA 171/11-12 forthe Assessment Year 2009-10 and as against the Order dated8.12.11 of the Deputy Commissioner of Income Tax CBE in PANNo.GIR No.AAACC8761 H for the Assessment Year 2009-10. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel:assisted by Ms.K.G.Usharani,Standing Counsel For Respondent :Mr.R.Venkatanarayana 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 dated21.10.2013, made in I.T.A.No.342/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2009-10. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on 08.09.2014, on thefollowing substantial questions of law:- “(i) Whether on facts and circumstances of thecase, the Tribunal was right in holding that whereexpenditure has been incurred towards raising theadditional equity shares which are attributed tothe extension of undertaking, the claim fordeduction under Section 35D of the Act isallowable? (ii) Whether based on material and evidencebefore it, the Tribunal could have come to theconclusion that the assessee had extension of itsexisting unit and is therefore eligible fordeduction under Section 35D of the Act?(iii) Whether on facts and circumstances of thecase, the Tribunal was right in not holding thatthe expenditure towards legal and consultancycharges which are claimed in full cannot beincluded in the claim for deduction under Section35D?(iv) Whether the Tribunal is right in grantingdeduction under Section 35D of the Act followingthe judgments in the case of EID Parry India Ltd.,vs. DCIT, 209 Taxman 214 and CIT v. Ashok LeylandLtd, 349 ITR 663, when there are five decisions ofthis Court which are against the assessee? and (v) Whether in the facts and circumstances ofthe case, the Tribunal is right in not consideringthe earlier judgments of this Court on the verysame issue, which are in favour of the department?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Mr.R.Venkatanarayana, learned counsel, forM/s.Subbaraya Aiyar, Padmanabhan & Ramamani, 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 questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the said https://hcservices.ecourts.gov.in/hcservices/ circular, 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 //True Copy// Sd/- Assistant Registrar To Sub Assistant Registrar 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the said https://hcservices.ecourts.gov.in/hcservices/ circular, 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 //True Copy// Sd/- Assistant Registrar To Sub Assistant Registrar 1.The Income Tax Appellate Tribunal 'C' Bench, Chennai.2. The Commissioner of Income Tax, (Appeals-I), Coimbatore.3. The Deputy Commissioner of Income Tax, Company Circle-I(3), Coimbatore. +1cc to M/s.Subbaraya Aiyar Padmanabhan, Advocate, SR.No.73373+1cc to Mr.T.R.Senthil Kumar, Advocate, SR.No.72910T.C.A.No.414 of 2014Kak(22/10/2019)