Principal Commissioner Of Income Tax 1 v. M/S.chiranjeevi Wind Energy Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 26.11.2019CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN Principal Commissioner of Income Tax 1,No.63, Race Course Road,Coimbatore. ... Appellant/Appellant in both the appeals Vs M/s.Chiranjeevi Wind Energy Ltd.,No.45/3A, Arts College road Lane,Opp. Bala Lodge, Coimbatore - 641 018.PAN: AAACC 8761H...Respondent/Respondent in both the appeals COMMON PRAYER: Tax Case Appeals filed under Section 260A ofIncome Tax Act, 1961 against the order dated 10.07.2017 in ITANo.319/Mds/2015 & 2324/Mds/2016 and ITA No.442/Mds/2015 &2468/Mds/2016 on the file of the Income Tax Appellate TribunalChennai 'C' Bench for the assessment years 2010-11 & 2011-12,against the Order of Commissioner of Income Tax (Appeals)-1,coimbatore,dated 29.04.2016, 07.11.2004 in A.Nos.146/14-15,172/13-14, for the assessment year 2011-12 and 2010-2011 andarising out of the Assessment Orders of Deputy Commissioner ofIncome Tax, Company Circle-I(1), Coimbatore, dated 31.03.2014 &28.03.2013 in PAN Nos. & for the Assessmentyear 2011-12 and 2010-11 respectively. These tax case appeals have been filed against the orderof the Income Tax Appellate Tribunal dated 10.07.2017 in ITANo.319/Mds/2015 & 2324/Mds/2016 and ITA No.442/Mds/2015 &2468/Mds/2016 in dismissing the appeals filed by the Departmentof revenue and partly allowing the appeals filed by the assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mr.T.R.Senthil Kumar, learned Counsel for theappelant and Mr.Venkata Narayanan, learned Counsel for therespondent. 3.These appeals are admitted on the following substantialquestions of law; “(i)Whether the Appellate Tribunal was right inholding that the advance money paid by the assessee topurchase of Cranes, which was neither delivered to theassessee nor recovered from the purchaser is businessloss allowable as a deduction in the course of thebusiness to the assessee?(ii)Whether the Appellate Tribunal was right inrelying upon the judgement of the Hon'ble High Court inthe case of CIT Vs.Indian Biselers [181 ITR 69], whenthe cited case is clearly distinguishable from theinstant case on all merits? (iii)Whether the Appellate Tribunal was right innot considering the Judgment of the Hon'bleJurisdictional high Court in the case of Kwality Funfoods and Restaurants (P) Ltd., Vs. DCIT wherein it washeld that, 'if the amount advanced was incurred towardscost of acquiring profit earning apparatus, it is notallowable as revenue loss?" 4.Mr.T.R.Senthil Kumar, learned Senior Standing Counselappearing on behalf of the appellant would submit that the taxeffect in this case is less than Rs.1 crore and is covered byCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Department of Revenue, Ministryof Finance, Government of India, Delhi. As per the saidcircular, the monetary limit to file an appeal before the HighCourt is fixed at Rs.1 crore. In this case, tax effect is lessthan Rs.1 crore and therefore, the appeals have to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para 3of the Circular mentioned above and accordingly, thetable for monetary limits specified in Para 3 of theCircular shall read as follows: 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para 3of the Circular mentioned above and accordingly, thetable for monetary limits specified in Para 3 of theCircular shall read as follows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, these Tax Case Appeals aredismissed on account of tax effect. However, the substantialquestion of laws framed are left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeals to be heard and decided on merits. No costs. Sd/-Assistant Registrar(CS-VIII)// True Copy// ay To Sub Assistant Registrar 1.Principal Commissioner of Income Tax 1,No.63, Race Course Road, Coimbatore. 2.The Income Tax Appellate Tribunal, Chennai 'C' Bench, Chennai. 3.Income Tax Appeal-I, Coimbatore. 4.The Deputy Commissioner of Income Tax company Circle-I(1),Coimbatore. +1CC to Mr.Subbaraya Aiyar Padmanabhan, Advocate, SR.No.98521.+1CC to Mr.T.R.Senthil Kumar, Advocate, SR.No.98523. VBA(CO)CSR:20/01/2020 https://hcservices.ecourts.gov.in/hcservices/