The Commissioner Of Income Tax Chennai v. M/S. Bharath Coal Chemicals Ltd.,1St Floor, Sigappi Aachi Building

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 2.11.2018 CORAM THE HON'BLE MR.JUSTICE HULUVADI G. RAMESHANDTHE HON'BLE MR.JUSTICE K.KALYANASUNDARAM Tax Case Appeal No.337 of 2018 The Commissioner of Income Tax Chennai...Appellant/Respondent Vs. M/s. Bharath Coal Chemicals Ltd.,1st Floor, Sigappi Aachi Building,No.18/3, Rukmani Lakshmipathi Salai,Egmore, Chennai 600 008.PAN: AAC CH 2455 F..Respondent/Appellant Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai, dated 3.2.2017 made inITA No.1518/Mds/2016 against the order passed by theCommissioner of Income Tax, Chenni 600 034 dated 29.4.2016made in ITA.NO.262/CIT(A)-1/14-15 for the Assessment year2012-13 and against the order passed by the Income TaxOfficer, Corporation ward 1(2) Chennai 600 034 order dated27.1.2015 made in AACCH2455F for the Assessment year 2012-2013. For Appellant : Mr.T.Ravikumar Standing Counsel J U D G M E N T(Delivered by Huluvadi G.Ramesh,J) This Tax Case Appeal has been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, Madras Madras 'B' Bench,Chennai, dated dated 3.2.2017 made in ITA No.1518/Mds/2016,was admitted on the following substantial questions of law: "(i) Whether the Tribunal ought to haveapplied the law laid by the Supreme Court in thecase of Tuticorin Alkalis Chemicals andFertilizers Limited reported in 227 ITR 172 and https://hcservices.ecourts.gov.in/hcservices/ that of Auto Cast reported in 248 ITR 110 whereinit was held that the interest income earned fromthe fixed deposit as assessable as income fromother sources under section 56? (2) Whether the pre-operative income in theform of interest from Fixed Deposit is taxableunder the head income from other sources underSection 56 of the I.T. Act? (3) Whether the interest income receivedbefore the commencement of business could be setoff against capital expenditure?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.3/2018 dated 11.7.2018 wherein it is stipulatedthat appeals shall not be filed/pursued by the Departmentbefore the High Court in cases where the tax effect does notexceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the appeal is dismissedas not pressed, preserving the substantial questions of lawfor determination in an appropriate case. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar ssk. To 1. The Commissioner of Income Tax, Chennai. 2. The Income Tax Officer, Income Tax Department, Corporation War 1(2) 1 Wanarpathy Block, Nungambakkm, Chennai-34. 3. The Presiding Officer, Income Tax Appellate Tribunal, Madras B Bench, Chennai. 1 cc to Mr. T.Ravi Kumar, Advocate Sr.75611 SR(CO)EU(07/12/2018) TCA No.337 of 2018