The Commissioner Of Income Tax, Chennai v. M/S. Chettinad Morimura Semiconductormaterials Pvt Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 26.03.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.1098 of 2015 The Commissioner of Income Tax, Chennai... Appellant v. M/s. Chettinad Morimura SemiconductorMaterials Pvt Ltd.,No.37, Old Mahabalipuram Road,Khazhipattur Village Padur Post,Kancheepuram District – 603 103PAN AAACC 2461 Q... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “A” Bench, dated 12.06.2015 in ITA.No.50/Mds/2015 forthe Assessment Year 2009-2010, against the order of theCommissioner of Income Tax(Appeals)-I, Chennai, dated 30/09/2014made in ITA.No.209/13-14/A-1, against the order of the AssistantCommissioner of Income Tax, Company Circle(3), Chennai -34 forthe Assessment year 2009-10. 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 directed https://hcservices.ecourts.gov.in/hcservices/ against the order dated 12.06.2015 made in ITA.No.50/Mds/2015on the file of the Income Tax Appellate Tribunal, Chennai, ''A''Bench (for brevity, the Tribunal) for the Assessment Year 2009-2010. 3.The appeal was admitted on the following substantialquestions of law: “(i) Whether on the facts and circumstancesof the case, the Tribunal was right in allowingdeduction claimed u/s 801A of the Act?(ii) Is not the finding of the Tribunal badespecially when the loss on account ofdepreciation on wind mills in the earlier yearhas to be set off notionally against thededuction as per deduction u/s.801A(5)?” 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 Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. /True Copy/ To 1.The Income Tax Appellate Tribunal, Chennai, “A” Bench. 2.The Commissioner of Income Tax(Appeals)-I,Chennai. 3.The Assistant Commissioner of Income Tax, Company Circle -I(3), Chennai. Company Circle -I(3), Chennai. 4.The Commissioner of Income Tax, Chennai. +1cc to Mr.T.Ravikumar, Advocate SR.NO..19753+1cc to Mr.S.Sridhar, Advocate SR.NO..19748 AKM/28.04.21/2P-7C/ T.C.A.No.1098 of 201526.03.2021 https://hcservices.ecourts.gov.in/hcservices/