Tca/230/2015 Of The Commissioner Of Income Tax v. M/S Sri Lakshmi Saraswathy

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 27.08.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Commissioner of Income Tax,Chennai....Appellant/Appellant M/s.Sri Lakshmi Saraswathy Textiles (Arni) Ltd.,16, Krishnama Road, Nungambakkam,Chennai - 600 034.PAN: ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 09.06.2014 made in ITA.No.809/MDS/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2003-04. JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel, assisted by Ms.K.G.Usharani, learned counsel appearingfor the appellant/revenue and Mr.Philip George, learned counselappearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated09.06.2014 made in ITA.No.809/MDS/2014 on the file of the IncomeTax Appellate Tribunal, Chennai 'B' Bench for the assessmentyear 2003-04. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 21.07.2015 on the followingsubstantial questions of law : “i) Whether on the facts and circumstancesof the case, the Appellate Tribunal was right inholding that the assessee was entitled todeduction on profit from sale of DEPB from itstotal income without fulfilling the conditionsprescribed in the 3rd proviso to Section 80HHCof the Income Tax Act? ii) Whether in the facts and circumstancesof the case, the Tribunal was right inoverlooking the fact that in the absence of 3rdproviso to Section 80HHC of the Income Tax Act,the assessee would not be entitled to deductionof profit from sale of DEPB license from itstotal income in the light of Explanation (baa)to Section 80HHC and Section 28(iiie) of theIncome Tax Act?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is 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 this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax(Appeals) VI,Chennai -34. 3.The Assistant Commissioner of Income Tax Company Circle VI(4), Chennai. +1 cc to M/s.T.R.Senthil Kumar,Advocate Sr.No. 73611+1 cc to M/s.Philip George,Advocate Sr.No. 74919AKM/01.11.19/3P-6C / TCA.No.230 of 2015