Tca/320/2016 Of Commissioner Of Income Tax v. M/S Muthu Export House

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 21.01.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.320 of 2016 Commissioner of Income Tax,Chennai. ... Appellant/Appellant -vs- M/s.Muthu Export House,No.25, New Salem Bye Pass Road,Karur-639 006.[PAN: ] ... RespondentRespondent Tax Case Appeal filed under Section 260A of the Income-taxAct, 1961 against the order of the Income-tax AppellateTribunal, 'A' Bench, Chennai, dated 09.07.2015, passed inI.T.A.No.1154/Mds/2015, for the assessment year 2010-11, againstthe order of Commissioner of Income Tax(Appeals)-I, Trichy inITA.NO.61/2013-14/CIT(A)/TRY dated 05/02/15 against the order ofAssistant Commissioner of Income-Tax, Trichy in AAAFM8638A/dated26/03/13. For Appellant :Mrs.V.Pushpa, Junior Standing Counsel :for Mr.M.Swaminathan, Senior Standing Counsel For Respondent : Mr.N.Quadir Hoseyn JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal, by the appellant/Revenue filed under Section260A of the Income Tax Act, 1961, is directed against the orderof the Income-tax Appellate Tribunal, 'A' Bench, Chennai, dated https://hcservices.ecourts.gov.in/hcservices/ 09.07.2015, in I.T.A.No.1154/Mds/2015, for the assessment year2010-11. 2.Heard Mrs.V.Pushpa, learned Junior Standing Counsel forthe appellant; and Mr.N.Quadir Hoseyn, learned counsel for therespondent. 3.The above appeal has been admitted, on 22.04.2016, onthe following substantial questions of law:-“(i) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that receipts from sale of carboncredits are to be treated as capital receipt notassessable to tax? and (ii) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that the receipts from the sale ofcarbon credits are entitled for deduction underSection 80IA with respect to the windmilldivision?” 4.We have perused the order of assessment as well asthe order passed by the Commissioner of Income-tax (Appeals)-1,Tiruchirapalli, and we find that the tax effect in this appealis lesser than the threshold limit mentioned in Circular No.3 of2018, dated 11.07.2018, issued by the Central Board of DirectTaxes, which fixes the monetary limit as Rs.50,00,000/- for theDepartment to pursue the matter. Furthermore, the Revenue hasnot been able to point out any distinguishing features, by whichthe Circular No.3 of 2018, dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannotpursue this appeal in view of the low tax effect. Hence, thisappeal is dismissed and the substantial questions of law, framedfor consideration, are left open. The Revenue is at liberty toseek for restoration of appeal if at a later point of time, itis found that the tax effect is above the threshold limit or tofall under the exceptional clauses mentioned in the Circular.No costs. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar abr To 1.The Income-tax Appellate Tribunal, 'A' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)I NO.44 Williams Road, Contonment, Trichy. 3.The Assistant Commissioner of Income Tax,Circle-II, Trichy. +1cc to M/s.N.Quadir Hoseyn, Advocate sr.no.7475 T.C.(A) No.320 of 2016 nr 01/03/2019