The Commissioner Of Income Tax, Chennai v. Ambur Economic Developmentorganization Ltd., Akber Rifa & Co.,Chennai-84

In the High Court of Judicature at Madras Dated : 02.1.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.173 of 2013 The Commissioner of Income Tax, Chennai ...Appellant Vs Ambur Economic DevelopmentOrganization Ltd., Akber Rifa & Co.,Chennai-84...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 24.9.2012 in ITA No.326/Mds/2012 on thefile of the Income Tax Appellate Tribunal Madras 'C' Bench forthe assessment year 2006-07 and against the O/o.Commissioner ofIncome Tax, Chennai - I, Chennai - 34 and made in C.No.218(14)/CIT-I/263/2010-11, dated 30/09/2010 for the assessment year2006-07 and against the Order of Deputy Commissioner of IncomeTax Department, Company Circle I(1), Chennai in PANNo.AAFCA3014L dated 30.07.2008 for the assessment year 2006-2007. For Appellant : Mr.T.Ravikumar, SSC For Respondent :M/s.Pass AssociatesJudgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 17.6.2013 onthe following substantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in settingaside the ord/r of the Commissioner ofIncome Tax under Section 263 of the IncomeTax Act, when the assessment order sought to https://hcservices.ecourts.gov.in/hcservices/ be revised was contrary to the Supreme Courtjudgment in the case of Tuticorin Alkali &Chemicals Ltd. [227 ITR 172] ? and ii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in treating theinterest earned on fixed deposits prior tocommencement of business as capital receiptinstead of 'income from other sources' ? ” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. Sd/- Assistant Registrar //True Copy// RS Sub Assistant Registrar To 1)The Income Tax Appellate Tribunal, Madras -C- Bench. 2)The Commissioner of Income Tax, Chennai - I, Chennai - 34 3)The Deputy Commissioner of Income Tax, Company Circle I(1), Chennai RR(CO)SSM(18/03/2019) . TCA.No.173 of 2013