Tca/3/2011 Of The Commissioner Of Income Tax v. M/S Nani Agro Foods P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.11.2018 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.3 of 2011 The Commissioner of Income Tax,Chennai. ... Appellant/Appellant-vs-M/s.Nani Agro Foods (P) Ltd.,32,Ottukara Chinniya St., Erode.... Respondent/RespondentTax Case (Appeal) filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income-tax AppellateTribunal, “B” Bench, Chennai, dated 06.08.2010, passed inI.T.A.No.309/Mds/2010 for the assessment year 2005-06. againstthe order dated:10/12/2009 on the file of commissioner of IncomeTax (Appeals)-II made in ITA.412C/09-10 against the orderdated:14/12/2007 on the file of Deputy Commissioner of IncomeTax Circle-IV, Coimbatore made in PAN.GIR.No. .For Appellant:M/s.K.G.UsharaniFor Respondent :Mr.R.Venkatanarayanan for M/s.Subaraya Aiyar Padmanabhan JUDGMENT (Judgment was delivered by T.S.Sivagnanam, J.) This appeal by the appellant/Revenue is directed againstthe order of the Income-tax Appellate Tribunal, “B” Bench,Chennai, dated 06.08.2010, passed in I.T.A.No.309/Mds/2010 forthe assessment year 2005-06. 2.Heard M/s.K.G.Usharani, learned counsel for theappellant/Revenue and Mr.R.Venkatanarayanan, learned counsel forthe respondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 3.This Appeal has been admitted on 24.02.2011, on thefollowing substantial question of law:- “Whether on the facts and in thecircumstances of the case, the Income TaxTribunal was right in allowing the additionaldepreciation amounting to RS.5,60,590/- claimedunder Section 32(1)(iia) of the Income Tax Act,1961 in respect of wind mills?” 4.We have perused the Order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Question of Law, framed forconsideration, is left open. No costs. The Revenue is atliberty to seek for restoration of appeal if at a later point oftime, it is found that the tax effect is above the thresholdlimit or to fall under the exceptional clauses mentioned in theCircular. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar cseTo 1.The Deputy /Assistant Registrar,The Income-tax Appellate Tribunal, “B” Bench,Chennai. 2.The Commissioner of Income Tax,Chennai 3.The Commissioner of Income Tax, (Appeals) II Coimbatore. 4.The Deputy Commissioner of Income Tax,Circle IV, Coimbatore. +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No.80759 +1cc to Mr.Subbaraya Aiyar, Advocate, S.R.No.80768 Tax Case (Appeal) No.3 of 2011 VGI(CO)GSP(24/12/2018)