The Commissioner Of Income Tax, Chennai v. M/S. Besser Concerte Systems Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 26.03.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.1157 of 2015 The Commissioner of Income Tax, Chennai... Appellant v. M/s. Besser Concerte Systems Ltd.,C/o. Shri S.Sridhar, Advocate,New No.14, Flat No.5,1[st] Avenue, Indira Nagar,Adyar, Chennai – 600 020.... Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, “A” Bench, dated 20.02.2014 inITA.No.458/Mds/2007 for the Assessment Year 2000-2001 againstthe order of the commissioner of Income Tax (Appeals) IIIChennai, made in ITA No.664/2005-06/A III dated 04/01/2007,for the Assessment Year 2000-01 against the Assessment orderof the Assistant Commissioner of Income Tax Company Circle 1(2), Chennai, ,ade in PAN/GIR No. /BX6172 dated31/01/2006 for the Assessment order dated 2000-01. For Appellant : Mrs. R.Hemalatha, Senior Standing Counsel For Respondent : Mr. M. Kaushik for Mr. S. Sridhar JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) We have heard Mrs. R.Hemalatha, learned Senior StandingCounsel for the appellant/Revenue and Mr.M. Kaushik for therespondent/Assessee. 2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainsttheorderdated20.02.2014madeinITA.No.458/Mds/2007 on the file of the Income Tax AppellateTribunal, Chennai, ''A'' Bench (for brevity, the Tribunal) forthe Assessment Year 2000-2001. 3.The appeal was admitted on the following substantialhttps://hcservices.ecourts.gov.in/hcservices/questions of law: “(i) Whether on the facts andcircumstances of the case, the Tribunal wasrightindeletingtheadditionofRs.7,46,46,043/- made to book profitespecially when clause (b) section 115JAprovides that the amount credited to anyreserve by whatever name called shall be addedback to the book profit? (ii) Is not the finding of the Tribunalbad especially when section 41(1) speaks aboutany remission of liability should be in thenature of income and import of section 41(1)cannot be ignored while computing book profitunder section 115JA?” 4.The learned Senior Standing Counsel appearing for theappellant submits that the above appeal is not pursued by theRevenue on account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 crore. It is further submitted that the taxeffect in this case is less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial question of law framed is leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty is grantedto the Revenue to make a mention to this Court to restore theappeal to be heard and decided on merits. No costs. Sd/-Assistant Registrar(CS-IV) //True copy// Rj Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai, ''A'' Bench 2. The Commissioner of Income Tax (Appeals) III, Chennai. 3. The Assistant Commissioner of Income Tax, Company Circle 1(2) Chennai.https://hcservices.ecourts.gov.in/hcservices/ 4. The Commissioner of Income Tax, Chennai Chennai +1cc to Mr.S. Sridhar, Advocate SR.No.19750 +1cc to Mr.T.Ravi Kumar, Advocate SR.No.19751 T.C.A.No.1157 of 2015 RLD(CO)GMY(03/05/2021)