Commissioner Of Income Taxcoimbatore v. M/S.viking Textiles P. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 5.6.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (A) No.556 of 2013 Commissioner of Income TaxCoimbatore. Appellant Vs. M/s.Viking Textiles P. Ltd.,505, Avinashi Road,Tirupur. PAN: AACV7564P Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, 'D' Bench, Chennai, dated 30.11.2011 made in ITANo.1570/Mds/2011. Against the order of the Commissioner of Income Tax Appeals)II, Coimbtore dated 21/07/2011 PAN/TAN AACVT564P. For theassessment year 2007-2008 and against the order of the Deputycommissioner of Income Tax, Company Circle Tiruppur, dated17/12/2009 P.A.No. /GIR.No. AAACVTR64P DCIT Company circle,Tiruppur for the Assessment Year 2007-08. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Mr.R.Sivaraman J U D G M E N T(Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'D' Bench, Chennai, dated30.11.2011 made in ITA No.1570/Mds/2011, for the AssessmentYear 2007-2008, by raising the following substantial questionsof law: https://hcservices.ecourts.gov.in/hcservices/ "(i) Whether under the facts and circumstances ofthe case, the Hon'ble Income Tax AppellateTribunal was right in law in holding that profitsof the windmill for the purpose of computingdeduction under Section 80IA is to be determinedon the basis of annual landing cost of electricitypurchased by the assessee from TamilnaduElectricity Board? (ii) Whether under the facts and circumstances ofthe case, the Hon'ble Income Tax AppellateTribunal was right in law in holding that theprice of Rs.2.70 per unit at which the assesseesold its power to Tamilnadu Electricity Boardcannot be equated with market rate as understoodfor the purpose of section 80 IA (8)? (iii) Whether under the facts and circumstances ofthe case, the Hon'ble Income Tax AppellateTribunal was right in law in holding that theprice of Rs.3.50 per unit at which the assesseepurchases the electricity from Tamil NaduElectricity Board corresponds to market value, incomputing deduction under Section 80 IA?" 2. When the matter is taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appealfiled by the Revenue is dismissed, as withdrawn, keeping openthe substantial questions of law for determination inappropriate cases. No costs. Ssk. https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 'D' Bench, Chennai. 2.The Commissioner of Income Tax Coimbatore. Coimbatore. 3.The Deputy Commissioner of Income Tax, Tiruppur. Tiruppur. Tax Case (A) No.556 of 2013 AD(CO)GN(29/06/2020)