Commissioner Of Income Tax,Coimbatore v. M/S.matha Spinning Mills (P) Ltd

In the High Court of Judicature at Madras Dated : 18.06.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.319 of 2014 Commissioner of Income Tax,Coimbatore. -vs- M/s.Matha Spinning Mills (P) Ltd.,207/86, Mangalam Road,Tirupur-641 601. ...Appellant ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 30.08.2013 made in I.T.A.No.617/Mds/2013 on thefile of the Income Tax Appellate Tribunal 'D' Bench, Chennai forthe assessment year 2009-10 as against the order of theCommissioner of Income Tax (Appeals)-II, Coimbatore made in ITAppeal No.50/11-12 dated 30/01/2013 as against the order of theDeputy Commissioner of Income Tax, Company Circle, TirupurPAN/GIR.No.AAECS1881Q dated 09/03/2011 for the Assessment year2009-2010. For Appellant :Mr.T.R.Senthil Kumar,Senior Standing Counsel &Ms.K.G.Usha Rani,Standing Counsel For Respondent: Mr.R.Sivaraman 1/3 Judgment was delivered by T.S.Sivagnanam,J. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel appearingfor the appellant-Revenue and Mr.R.Sivaraman, learned counselfor the respondent-assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated30.08.2013, made in I.T.A.No.617/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'D' Bench, Chennai for theassessment year 2009-10. 3. The appeal was admitted on 21.07.2014, on the followingsubstantial question of law:-“Whether the Tribunal was right in holdingthat the proceeds realized by the assesseeon sale of Certified Emission ReductionCredit, which the assessee had earned on theClean Development Mechanism in its windenergy operations, is a capital receipt andnot taxable?” 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 abr True Copy Sub-Assistant Registrar 2/3 https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)-II Coimbatore 3.The Deputy Commissioner of Income Tax,Company CircleTirupur.Company CircleTirupur. TCA.No.319 of 2014spd(co)aa29/09/2020 3/3