Tca/971/2010 Of Commisisoner Of Income Tax v. M/S Bagumar Finance Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 19.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.971 OF 2010 Commissioner of Income Tax,Chennai...Appellant/AppellantVsM/s.Baghmar Finance Ltd.,Chennai-79....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 23.4.2010 made in ITA.No.1368/Mds/2009 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2006-07. as against the Commissioner ofIncome Tax (A) order in ITA.No.177/08-09/A-III dated 28.05.2009as against the Order of the Assessment order of the Income TaxOfficer, Company Circle 1(2), Chennai Assessment year 2006-07dated 31.12.2008. For Appellant :Mrs.R.Hemalatha, SSCFor Respondent :Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mrs.R.Hemalatha, learned Senior StandingCounsel appearing for the appellant – Revenue andMr.A.S.Sriraman, learned counsel for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated23.4.2010 made in ITA.No. 1368/Mds/2009 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for theassessment year 2006-07. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 25.10.2010 on the followingsubstantial question of law : “Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessee company is a owner of the asset and is entitled to depreciation on windmill at Rs.3,22,42,546/- ?” 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. Sd/- Assistant Registrar(CS IV) //True Copy// rs Sub Assistant Registrar To1.The Income Tax Appellate Tribunal, Chennai 'A' Bench.2.The Commissioner of Income Tax(A)-III,Chennai.3.The Income Tax Officer(OSD), Company Circle1(2), Chennai. PPA(CO)CS/30/10/2019