Tca/430/2011 Of Commissioner Of Income Tax v. Revathy Cp Equipments Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 19.12.2018 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.430 of 2011 The Commissioner of Income Tax,Coimbatore. ... Appellant-vs-... Respondent Revathy CP Equipments Ltd.,Coimbatore Tax Case (Appeal) filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income-tax AppellateTribunal, “A” Bench, Chennai, dated 17.04.2001, passed inI.T.A.No.1953/92 for the assessment year 1989-90.against theorder of the Income Tax Appellate Tribunal madras a benchdated:17/04/2001 in ITA.No.1953 of 1992 assessment year 1989-90.against the order of the Commissioner of Income Tax(Appeals)Coimbatore dated:24/06/1992 in ITA.No.250-c /92-93 in theAssessment year 1989-90.against the order of the DeputyCommissioner of Income Tax Special Range-II Coimbatoredated:30/03/1992 CV-3183/SRII/CBE in the Assessment year-1989-90. For Appellant:Mr.T.R.Senthil KumarSenior Standing CounselFor Respondent :Mr.M.P.Senthil Kumar 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, “A” Bench,Chennai, dated 17.04.2001, passed in I.T.A.No.1953/92 for theassessment year 1989-90. 2.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the appellant/Revenue and Mr.M.P.Senthil Kumar,learned counsel for the 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 in the facts and circumstances of thecase, the Tribunal was right in law in holding thatthe provision for liability that is non est, whichwas credited to profit and loss account isallowable?" 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(CCC) cseTo //True Copy// Sub Assistant Registrar 1.The Income-tax Appellate Tribunal, “A” Bench, Chennai. 2.The Commissioner of Income Tax AppealsCoimbatore. 3.The Deputy Commissioner of Income Tax,Special Range-II Coimbatore. +1cc to Mr.N.Muthukumar, Advocate, S.R.No.88584+1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.88710 MG(CO)GSP(28/01/2019) https://hcservices.ecourts.gov.in/hcservices/