Commissioner Of Income Tax v. M/S. Brt Spinners Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 02.07.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R.HEMALATHA T.C.A.No.353 of 2015 Commissioner of Income Tax,No.63, Race Course Road,Coimbatore.... Appellant v. M/s. BRT Spinners Pvt. Ltd.,No.336, Pullakkadu Thottam,Kombakkadupudur, Itchipatti Post,Coimbatore – 641 668.PAN: AAA CB 7320 D ... Respondent/Cross Objector PRAYER:- Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "A" Bench, dated 10.09.2014 in C.O.No.61/Mds/2014 inITA.No.1675/Mds/2014 for the Assessment Year 2010-2011 againstthe Order passed by the Commissioner of Income Tax (Appeals)-II,Coimbatore, dated 24.03.2014, made in I.T.A.No.44/12-13 for theAssessment Year 2010-11 against the Assessment Order passed bythe Deputy Commissioner of Income-Tax, Company Circle, Tirupur,dated 31.10.2012 made in P.A.No./G.I.R.No.AAACB7320D for theAssessment year 2010-11 We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the appellant/Revenue and Mr.S.Sendamarai Kannan,learned counsel for the respondent. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 10.09.2014 made in C.O.No.61/Mds/2014 inITA.No.1675/Mds/2014 on the file of the Income Tax AppellateTribunal, Chennai, "A" Bench (for brevity, the Tribunal) for theAssessment Year 2010-2011. 3. The appeal was admitted on the following substantialquestion of law:- “Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding that theproceeds realized by the assessee on sale ofCertified Emission Reduction Credit, which theassessee had earned on the Clean Developmentmechanism in its wind energy operations, is acapital receipt and not taxable?” 4. The learned Senior Standing Counsel appearing for theappellant submits that the above appeal is not pursued by theRevenue on account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 Crore. It is further submitted that the taxeffect in this case is less than the threshold limit. 5. In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/-Assistant Registrar(CS) // True Copy// Sub Assistant Registrar gv https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai,"A" Bench 2.The Commissioner of Income Tax(Appeals)-II, Coimbatore. 3.The Deputy Commissioner of Income Tax,Company Circle, Tirupur. +1cc to Mr.T.R.Senthil Kumar, Senior Standing Counsel, Advocate,S.R.No.30694 T.C.A.No.353 of 2015 (CO)SU(09/08/2021)