Tca/472/2015 Of Commissioner Of Income Tax v. Sivaraj Spinning Mills P

In the High Court of Judicature at Madras Dated : 18.06.2020 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.472 of 2015andM.P.No.1 of 2015 Commissioner of Income Tax,Company Circle,Tirupur. ...Appellant/Respondent-vs- Sivaraj Spinning Mills (P) Limited,86, Mangalam Road,Karuvampalayam, Tirupur-641 601.PAN: ...Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 31.07.2014 made in I.T.A.No.652/Mds/2013on the file of the Income Tax Appellate Tribunal 'C' Bench,Chennai for the assessment year 2009-10. Against the Commissioner of Income Tax (Appeals)-II,Coimbatore dated 30.01.2013 made in ITA No.48/11-12 against theDeputy Commissioner of Income Tax Company Circle, Tiruppur,PAN/GIR No. dated 09.03.2011 for the assessment year2009-10. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel for theappellant-Revenue and Mr.R.Sivaraman, learned counsel appearingfor the respondent-assessee. https://hcservices.ecourts.gov.in/hcservices/ the Income Tax Act, 1961 is directed against the order dated31.07.2014 made in I.T.A.No.652/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2009-10. 3. The appeal was admitted on 22.07.2015, on the followingsubstantial question of law:-“Whether on the facts and circumstances of thecase, the Tribunal was right in holding that theproceeds realized by the assessee on sale ofCertified Emission Reduction Credit, which theassessee had earned on the Clean DevelopmentMechanism in its wind energy operations, is acapital receipt and not taxable?” 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 question of law framed is 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. Consequently, connected miscellaneous petitionis closed.Sd/- Assistant Registrar To 1. The Income Tax Appellate Tribunal 'C' Bench, Chennai. 2. The Commissioner of Income Tax Company Circle, Tiruppur. 3. The Commissioner of Income Tax (Appeals)-II, Coimbatore4. The Deputy Commissioner of Income Tax Company Circle, Tiruppur. https://hcservices.ecourts.gov.in/hcservices/