Tca/220/2011 Of Commissioner Of Income Tax-Ltu v. M/S.m.r.f.limited

In the High Court of Judicature at Madras Dated : 20.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 16.7.2010 made in ITA.Nos.707 &708/Mds/2010 as well as C.O.Nos.39 and 40/Mds/2010 respectivelyin ITA.Nos.707 & 708/Mds/ 2010 on the file of the Income TaxAppellate Tribunal, Chennai 'B' Bench respectively for theassessment years 1999-2000 and 2000-01. as against the Orderdated 26/02/2010 and made in ITA No. 5 & 6 /09-10/ LTU(A) on thefile of the Commissioner of Income Tax (Appeals), Chennai andagainst the Order dated 26/03/2009 and made in AAACB 2553Q/200-01 and made in AAACM4154G /2000-01 on the file of the Assistantcommissioner of Income Tax (LTU), Chennai. For Appellant:Mr.T.Ravikumar, SSC and Mrs.R.Hemalatha, SSC For Respondent:Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyer Padmanabhan COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Mr.R. Venkatanarayanan, learned counsel appearing for therespondent – assessee. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 16.7.2010 made in ITA.Nos.707 & 708/Mds/2010 as well asC.O.Nos.39 and 40/Mds/2010 respectively in ITA.Nos.707 &708/Mds/ 2010 on the file of the Income Tax Appellate Tribunal,Chennai 'B' Bench respectively for the assessment years 1999-2000 and 2000-01. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeals were admitted on 13.6.2011 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe orders of the Assessing Officer underSection 154 of the Income Tax Act for theassessment years 1999-2000 and 2000-01excluding the DEPB receipts in thecomputation of deduction under Section 80HHC(3) were invalid on account of the issuebeing a debatable one without appreciatingthat the orders subjected to rectificationsuffered from mistake of law in view ofretrospective amendment made under Section80HHC(3) by the Taxation Law Amendment Act,2005 ? andii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in dismissingthe appeals of the Revenue against theorders of the Commissioner of Income Tax(Appeals) as infructuous without going intothe merits of the grounds of appeals?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/-Assistant Registrar (Insp Cell) //True Copy// RS https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. Chennai 'B' Bench. 2.The Commissioner of Income Tax, LTU, Chennai. LTU, Chennai. 3.The Commissioner of Income Tax (Appeals), Chennai. Chennai. 4.The Assistant Commissioner of Income Tax (LTU), Chennai. Chennai. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/-Assistant Registrar (Insp Cell) //True Copy// RS https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. Chennai 'B' Bench. 2.The Commissioner of Income Tax, LTU, Chennai. LTU, Chennai. 3.The Commissioner of Income Tax (Appeals), Chennai. Chennai. 4.The Assistant Commissioner of Income Tax (LTU), Chennai. Chennai. +1cc to Mr.Subbaraya Aiyer Padmanabhan, Advocate, S.R.No. 71043+1cc to Mr.T.Ravi Kumar, Advocate, S.R.No. 70542 TCA.Nos.220 to 223 of 2011VD(CO)GN(17/10/2019)