Tca/887/2010 Of Commissioner Of Incometax v. M/S Flakt India Ltd

In the High Court of Judicature at MadrasDated : 16.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.887 of 2010 APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 19.3.2010 made in ITA.No.578/Mds/2008 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2003-04, against the Order of theCommissioner of Income Tax (Appeals)-XII, Chennai - 34 dated23.11.2007 and made in ITA No.138/06-07 for the Assessment year2003-04, against the Order of the Deputy Commissioner of IncomeTax, Company Circle -II(1), Chennai - 34, dated 23.03.2006 andmade in PAN/GIR No. for the Assessment year 2003-04. We have heard Mr.Karthik Ranganathan, learned Senior StandingCounsel appearing for the appellant – Revenue. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated19.3.2010 made in ITA.No. 578/Mds/2008 on the file of the IncomeTax Appellate Tribunal, Chennai 'D' Bench for the assessmentyear 2003-04. https://hcservices.ecourts.gov.in/hcservices/ respect to unpaid liabilities amounting toRs.56,40,543/- that was taken over from ABBLtd., on the ground that the said amount wasnot charged to profit and loss account ? And ii. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in deleting the disallowance withrespect to the provision of Rs.55,43,213/-towards obsolete stock on the same groundthat the said amount was not charged toprofit and loss account?” 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. Sd/- Assistant Registrar (CS-IV) //True Copy// RS Sub Assistant RegistrarTo 1)The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2)The Commissioner of Income Tax (Appeals)-XII, Chennai - 34 Chennai - 34 3)The Deputy Commissioner of Income Tax, Company Circle -II(1), Chennai - 34.Company Circle -II(1), Chennai - 34. 4) The Commissioner of Income Tax, Chennai. Chennai. SV(CO)SSM(17/09/2019) TCA.No.887 of 2010 https://hcservices.ecourts.gov.in/hcservices/