Tax, Madurai v. M/S.sri Raju Spinning Mills Pvt. Ltd., Rajapalayam

In the High Court of Judicature at MadrasDated : 02.1.2019 Coram :The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.842 of 2013 The Commissioner of Income Tax, Madurai Tax, Madurai ...Appellant VsM/s.Sri Raju Spinning Mills Pvt.Ltd., Rajapalayam. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 24.11.2011 in ITA No.1184/Mds/2011 onthe file of the Income Tax Appellate Tribunal Madras 'D' Benchfor the assessment year 2007-08 against the order of theCommissioner of Income Tax (Appeals)-II Madurai in ITA No.135/2009-10 dated 28.03.2011 for the Assessment year 2007-08against the order of Assistant Commissioner of Income Tax,Circle-I, Virudhunagar dt.03/12/2019 for the assessment year2007-2008 For Appellant : Mr.M.Swaminathan, SSC, Ms.V.Pushpa, JSCand Ms.S.Premalatha, JSCFor Respondent :Mr.P.J.Rishikesh Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Senior Standing 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. The appeal was admitted on 10.4.2014 onthe following substantial questions of law : “i. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the cost oftransformer and civil work done inconnection with the windmill, which areindividual items and do not form part of thewindmill, are eligible for higher rate ofdepreciation as eligible to windmill ? Andii. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in granting higher rate of https://hcservices.ecourts.gov.in/hcservices/ depreciation when the entry in the schedulepertaining to the transformer and civil workindicate a lesser rate of depreciation at 15% only?” 3. The Revenue seeks to withdraw this 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 framed 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. No costs. Sd/- Assistant Registrar(CO) RS //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Madras 'D' Bench. 2.The Commissioner of Income Tax(Appeals)-II, Madurai. 3.The Assistant Commissioner of Income Tax, Circle-I, Virudhunagar. +1cc to Mr.M.Swaminathan, Advocate, S.R.No.60 +1cc to Mr.P.J.Rishikesh, Advocate, S.R.No.293 TCA.No.842 of 2013 SS(CO) rrs 22/03/2019 https://hcservices.ecourts.gov.in/hcservices/