Principal Commissioner Of Income Tax 2 v. M/S.thudiyalur Co-Operative Agricultural Services Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.01.2020CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN Principal Commissioner of Income Tax 2,No.63, Race Course Road,Coimbatore. ... Appellant VsM/s.Thudiyalur Co-operative AgriculturalServices Ltd.,No.1, Mettupalayam Road, Thudiyalur,Coimbatore - 641 034.PAN: AAA AT 3838 L ... Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income TaxAct, 1961 against the order dated 06.02.2019 inI.T.A.No.2278/Chny/2017 on the file of the Income Tax AppellateTribunal Chennai 'C' Bench for the assessment year 2007-08,against the order dated 15/06/2017 and made in Appeal No.1/17-18on the file of the Commissioner of Income Tax (Appeals)-3,Coimbatore and against the order dated 26/10/2016 and made inITA No.2830/Mds/2014 on the file of the Income Tax AppellateTribunal Chennai 'D' Bench, Chennai, and against the order dated08.09/2014 and made in Appeal No.274/13-14 on the file of theCommissioner of Income Tax (Appeals)-I, Coimbatore and againstthe Order dated 01/03/2013 and made in PAN AAAA t3838L on thefile of the Income Tax Officer, Company Ward-I, Coimbatore. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel. For Respondent : Mr.M.Kaushik for Mr.S.Sridharan This tax case appeal has been filed against the order ofthe Income Tax Appellate Tribunaldated 06.02.2019 inI.T.A.No.2278/Chny/2017 in allowing the appeal filed by theassessee against the order of the Commissioner of Income Tax(Appeals) by which the appeal filed by the assessee wasdismissed. https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the appellant. 3.This tax case appeal is admitted on the followingsubstantial question of law: "Whether on the facts and in the circumstances ofthe case, the Hon'ble Tribunal is right in law inholding that the assessee is eligible for deductionunder Section 80P(4) of the Income Tax Act, when thereis violation of Explanation (a) below Section 80P(4)read with the provisions of Section 5 (cciv) and (ccv)of the banking Regulation Act?" 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 appeal has 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: 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, this Tax Case Appeal is https://hcservices.ecourts.gov.in/hcservices/ dismissed on account of tax effect. However, the substantialquestion of law framed is 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 appeal to be heard and decided on merits. No costs. Sd/-Assistant Registrar(CS-III) // True Copy// T.C.A.No.665 of 2019VD(CO)CSR: 26.02.2020