Commissioner Of Income Tax,Company Circle-I, Tirupur v. M/S.adisankara Spinning Mills Limited

In the High Court of Judicature at MadrasDated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.293 of 2015 Commissioner of Income Tax,Company Circle-I, Tirupur. Vs M/s.Adisankara Spinning Mills Limited,207/86, Mangalam Road,Karuvampalayam, Tirupur - 641 601.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 18.08.2014 made in ITA.No.631/MDS/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2009-10, and against the order dated30/1/2013 made in IT.Appeal No.51/11-12 on the file of thecommissioner of Income Tax (Appeals)-II, Coimbatore.And against the order dated 8/3/2011, made under sec.143(3)of the Income Tax Act,1961 on the file of the DeputyCommissioner of Income Tax Company Circle, Tirupur made inPAN/GIR No: AABCA5198B. For Appellant : Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani For Respondent: Mr.R.Sivaraman JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel, assisted by Ms.K.G.Usharani, learned counsel appearingfor the appellant/revenue and Mr.R.Sivaraman, learned counselappearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated18.08.2014 made in ITA.No.631/MDS/2013 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench for the assessmentyear 2009-10. 3.The appeal was admitted on 16.06.2015 on the followingsubstantial question of law :“Whether on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the proceeds realized bythe assessee on sale of Certified EmissionReduction Credit, which the assessee had earnedon the Clean Development Mechanism in its windenergy operations, is a capital receipt and nottaxable?" 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. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. Chennai 'A' Bench. 2 https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax, (Appeal-II), Coimbatore. 3.The Deputy Commissioner of Income Tax, Company circle, Tirupur. Company circle, Tirupur. +1cc to Mr.T.R.Senthilkumar, Advocate SR.73610/19 TCA.No.293 of 2015 GP(CO)CB(11/11/2019) 3