Commissioner Of Income Tax,Coimbatore v. M/S.lakshminarayanan Gaurishankerenterprises Private Ltd.,Sugarcane Breeding Institute Post,Coimbatore – 641 007

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.451 of 2014 Commissioner of Income Tax,Coimbatore.... Appellant Vs. M/s.Lakshminarayanan GaurishankerEnterprises Private Ltd.,Sugarcane Breeding Institute Post,Coimbatore – 641 007. ... Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, "C" Bench, dated 18.11.2013 inI.TA.No.1685/Mds/2013 Assessment Year 2010-11, Appeal againstthe order dated 25-06-2013 made in PAN.No./GIR No.AAACL3739Lon the file of the Coimbatore, for the Assessment year 2010-11& as appeal against the order dated 08-01-2013 made inPAN.AAACL3739L on the file of the Deputy Commissioner ofInocme Tax, Company Circle-I(3), Coimbatore, for theAssessment year 2010-11. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel For Respondent : no appearance JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel for the appellant/Revenue.2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainsttheorderdated18.11.2013madeinI.TA.No.1685/Mds/2013 on the file of the Income Tax AppellateTribunal, Chennai, "C" Bench (for brevity, the Tribunal) forthe Assessment Year 2010-11. 3.The appeal was admitted on 12.08.2014 on the followinghttps://hcservices.ecourts.gov.in/hcservices/substantial questions of law: “1)Whetherunderthefactsandcircumstances of the case, the Hon'ble IncomeTax Appellate Tribunal was right in law inholding that the assessee is entitled todeduction under Section 80 IA without settingoffthelosses/unabsorbeddepreciationpertaining to the windmill power generationbusiness, which were set off in the earlieryear against other business income of theassessee following the decision of thejurisdiction High Court in the case ofM/s.Velayudhaswamy Spinning Mills (240 ITR 477)when the same is pending appeal before theHon'ble Supreme Court in SLP Civil No.1136/11?2)Whetherunderthefactsandcircumstances of the case, the Income TaxAppellate Tribunal was correct in holding thatthe initial assessment year in section 80 IA(5) would only mean the year of claim ofdeduction under Section 80 IA and not the yearof commencement of eligible business?3)Whether on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the assessee has theoption to choose the first/initial assessmentyear of claim of deduction under Section 80IA?” 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 08.08.2019 issued by the Central Board of Direct Taxes.By the said Circular, the monetary limit for filing orpursuing an appeal before the High Court has been increased toRs.1 crore. It is further submitted that the tax effect inthese cases are less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial questions of law framed are leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Nocosts. Sd/- //True Copy// va To 1.The Income Tax Appellate Tribunal, Chennai, "C" Bench, Chennai. Chennai, "C" Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)-Im Coimbatore. Coimbatore. 3.The Deputy Commissioner of Income Tax, Company Circle-I(3), Coimbatore. Company Circle-I(3), Coimbatore. +1cc to Mr.T.R.Senthilkumar, Advocate SR.17819 T.C.A.No.451 of 2014 LN(CO)CB(29/03/2021)