Commissioner Of Income Taxcoimbatore v. M/S.elgi Ultra Industries Ltd.,Elgi House, Trichy Road, Coimbatore

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.01.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.30 of 2011 Commissioner of Income TaxCoimbatore. ... Appellant Vs. M/s.Elgi Ultra Industries Ltd.,Elgi House, Trichy Road, Coimbatore. ... Respondent Appeal filed under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal 'D'Bench, Chennai dated 26.10.2005 passed in I.T.A.No.1790/Mds/2003 Againsttheorderdated15.07.2003madeinI.T.A.No.219/2000-2001 on the file of the Commissioner of IncomeTax (Appeals)I, Coimbatore for the Assessment year 1998-1999.Againsttheorderdated08.07.2003madeinI.T.A.No.23/2000-2001 on the file of the Commissioner of IncomeTax (Appeals)I, Coimbatore for the Assessment year 1997-1998.Against the order dated 01.08.2000 made in P.A. No. PAN CV-2237/SR1/CBE on the file of the Joint Commissioner of IncomeTax, Special Range-1, Coimbatore for the Assessment year 1998-1999. Against the order dated 28.02.2000 made in PAN/GIR No. 49-502-CV-2237 on the file of the Joint Commissioner of Income TaxSpecial Range-1 Coimbatore for the assessment year 1997-1998. For Appellant : Mrs.K.G.Usha Rani Junior Standing Counsel For Respondent : Mr.N.V.Balaji JUDGMENT(Judgment of the Court was delivered by DR.VINEET KOTHARI,J.) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, by raising the following substantialquestions of law: https://hcservices.ecourts.gov.in/hcservices/ "1. Whether on the facts and in thecircumstances of the case the Income-Tax AppellateTribunal was right in law in holding that, theassessee is eligible for deduction under Section80IA of the Act, even though the assessee is notengaged as such in any Industrial activity of itsown except assembling on job work basis? 2.Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that, the Excise Duty andSales Tax are to be excluded from the total turnoverfor the purpose of computing the Income underSection 80HHC of the Income Tax Act, 1961? 2. When the matter is taken up for final hearing, thelearned Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 08.08.2019, wherein it is stipulatedthat appeals shall not be filed/pursued by the Department beforethe High Court in cases where the tax effect does not exceedRs.1 Crore (Rupees One Crore Only). 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 not pressed, keeping open thesubstantial questions of law for determination in an appropriatecase. No costs. SglTo1. Income Tax Appellate Tribunal,'D' Bench, Chennai. 2.The Commissioner of Income Tax Appeals-1, Coimbatore RSV(CO)SP(28/02/2020)