Tax Case v. J U D G M E N T

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 3.1.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case No.674 of 2008 The Commissioner of Income Tax Tamil Nadu-III,Chennai.Appellant Vs. M/s.Mapcon Private Ltd.,161 Greams Road, Chennai 600 006.Respondent Tax Case filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,Madras 'B' Bench, Chennai, dated 3.8.2007 made in ITANo.2142/Mds/2006 against the order dated 31/10/2003 made in ITANo.231/02-03 passed by the Commissioner of Income Tax (Appeals)-V, Chennai - 600 034 and against the order dated 30/12/2002passed by the Deputy Commissioner of Income Tax, Company CircleIV(1), Chennai - 34 for the assessment year 2000-2001. -----For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For respondent : Mr.A.S.Sriraman for Mr.S.Sridhar J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case has been filed by the Revenue calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'B' Bench, Chennai, dated 3.8.2007 made inITA No.2142/Mds/2006 by raising the following substantialquestions of law: "(i) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in law in holding that the claimof the assessee in respect of the actual cost of https://hcservices.ecourts.gov.in/hcservices/ Cinematographic films on sale and lease backtransaction by invoking explanation 3 to Section43(1) will apply to the facts of this case, eventhough explanation 4A will apply on the facts andcircumstances of the case?(ii) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in law in holding thatCinematographic films is held to be eligible for100% depreciation, even though as per No.3(ii),Appendix I of the depreciation table, bulbs ofstudio lights, are eligible for 100% depreciation?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Tax Casefiled by the Revenue is dismissed as not pressed, keeping openthe substantial questions of law for determination in anappropriate case. Sd/- Assistant Registrar(CS-III) //True Copy// ssk Sub Assistant Registrar To 1)The Income Tax Appellate Tribunal, Madras - B Bench, Chennai. 2)The Commissioner of Income Tax (Appeals)-V, Chennai - 600 034. 3)The Deputy Commissioner of Income Tax, Company Circle IV(1), Chennai - 34 4)The Commissioner of Income Tax,Tamilnadu III, Chennai. SAI(CO)SSM(31/01/2019) TC No.674 of 2008