Tca/944/2019 Of The Commissioner Of Income Tax v. M/S.sakthi Sugars Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN The Commissioner of Income Tax,Coimbatore. ... Appellant M/s.Sakthi Sugars Ltd.,180, Race Course Road,Coimbatore....Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act,1961 against the order dated 16.03.2000 in I.T.A.No.2096/Mds/1991 on the file of the Income Tax Appellate TribunalChennai 'A' Bench for the assessment year 1987-88. and againstthe O/o Commissioner of Income Tax (Appeals), Coimbatore, andmade in I.T.A.No.65C/1990-91 order dated 30.05.1990 and againstin Income Tax Department, Coimbatore and made in PAN.NO.47-023-CY-D162, dated 29.02.1990 in the Assessment year, 1987-88. For Appellant : Mr.T.R.Senthil Kumar For Respondent: M/s.N.Vijayaraghavan, for M/s.Subbaraya Aiyar Padmanabhan This tax case appeal has been filed against the order ofthe Income Tax Appellate Tribunal dated 16.03.2000 passed inI.T.A.No.2096/Mds/1991 in dismissing the appeal filed by theDepartment of Revenue against the order of the Commissioner ofIncome Tax (Appeals) by which the appeal filed by the assesseewas partly allowed. 2.Heard Mr.T.R.Senthil Kumar, learned Counsel for theappellant. 3.This tax case appeal is admitted on the followingsubstantial questions of law: https://hcservices.ecourts.gov.in/hcservices/ "(i)Whether the Tribunal was right in law inholding that eventhough the assessee did not make theclaim in its order, the claim for investment allowanceis still amenable for consideration under Sec.154? (ii)Whether the Tribunal was correct in holdingthat the grant of investment allowance was possibleonly after ensuring the creation of the reserve and theavailability of profits during the assessment year1987-88?" 4.Mr.T.R.Senthil Kumar, learned Counsel appearing on behalfof the appellant would submit that the tax effect in this caseis less than Rs.1 crore and is covered by Circular No.17/2019dated 08.08.2019 issued by the Director, Central Board of DirectTaxes, Department of Revenue, Ministry of Finance, Government ofIndia, Delhi. As per the said circular, the monetary limit tofile an appeal before the High Court is fixed at Rs.1 crore. Inthis case, tax effect is less than Rs.1 crore and therefore, theappeal has to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para 3of the Circular mentioned above and accordingly, thetable for monetary limits specified in Para 3 of theCircular shall read as follows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, this Tax Case Appeal isdismissed on account of tax effect. However, the substantialquestions of law framed are left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS V) //True Copy// ay Sub Assistant Registrar To 1.The Commissioner of Income Tax (Appeals),Coimbatore. 2.The Deputy Commissioner of Income Tax,Special Range-I, Coimbatore. 3.The Income Tax Appellate Tribunal,Chennai Bench. +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No.98522 +1cc to M/s.Subbaraya Aiyar Padmanabhan, Advocate, S.R.No.98833 T.C.A.No.944 of 2019 RR(CO)CS/09/01/2020