Principal Commissioner Of Income Tax v. M/S. Pallipalayam Spinners (P) Ltd,14-A, Sankari Bye-Pass Road,Pallipalayam – 638 006

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Principal Commissioner of Income Tax,No.3, Gandhi Road,Salem ... Appellant/Respondent Vs M/s. Pallipalayam Spinners (P) Ltd,14-A, Sankari Bye-Pass Road,Pallipalayam – 638 006.PAN: AAB CP 2474 R ... Respondent /Appellant APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 10.01.2018 in ITA No.2487/Mds/2017 onthe file of the Income Tax Appellate Tribunal Madras 'D' Benchfor the assessment year 2013-14. Against the order passsed by the Income Tax AppellateTribunal 'D' Bench, Chennai made in I.T.A.No.2487/MDS/2017 orderdated 10.01.2018 and against the order passed by the Income TaxDepartment, Office of the Commissioner of Income Tax (Appeals)Salem-7, made in I.T.A.No.25/2016-17 for the Assessment year2013-14 and against the order passed by the AssistantCommissioner of Income Tax Circle-1, Namakkal made in AABCP2474Rdated 17.03.2016 for the Assessment Year 2013-14 For Appellant : Ms. Premalatha for Mr. M. SwaminathanJudgment was delivered by T.S.SIVAGNANAM,J Heard the learned counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee, by raising the following substantialquestions of law : https://hcservices.ecourts.gov.in/hcservices/ “i. Whether the Tribunal is correct inholding that for the purpose of computingcost of electricity generated and consumedcaptively, the cost fixed by the StateElectricity Board including the duty andtaxes has to be taken for the purpose ofgrant of deduction u/s. 80 IA of the Act ? ii. Whether the order passed by theITAT is justified when it failed to followco-ordinate Bench decision on the same issueof section 80 IA in the case of Sri mathaSpinning mills pvt ltd-Vs-DCIT in ITAno.1845/mds/2011 dated 14-11-2012 ?” 3. The Revenue seeks to withdraw the appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial questions of law raised are leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. Sd/- Assistant Registrar(CS IV) //True Copy// mrnTo Sub Assistant Registrar 1. The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2. The Commissioner of Income Tax (Appeals), Salem. 3. The Assistant Commissioner of Income Tax, Circle-1, Namakkal. +1 cc to M/s.S.Premalatha, Advocate Sr.No.88074 SR(CO)CSL/29.01.2019