The Commissioner Of Income Tax, Chennai v. M/S.asian Handlooms, Karur

In the High Court of Judicature at Madras Dated : 21.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.485 of 2012 The Commissioner of Income Tax, Chennai...AppellantVsM/s.Asian Handlooms, Karur....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 27.6.2012 made in ITA.No.803/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2007-08. against the Appellate order of the Commissioner of Income Tax(Appeals), Tiruchirapalli, dated 25.02.2011 and made in ITA.No.322/09-10 for the assessment Year 2007-08; and against the Assessment order of the Deputy Commissioner ofIncome Tax, Circle II, Trichy, dated 30.12.2009 and made in PANNo. AABFA 0568 Q for the Assessment year 2007-08.For Appellant:Mr.M.Swaminathan, SSC assisted byMs.V.Pushpa, SC For Respondent:Mr.A.S.Sriraman for Mr.S.Sridhar We have heard Mr.M.Swaminathan, learned Senior StandingCounsel assisted by Ms.V.Pushpa, learned Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated27.6.2012 made in ITA.No. 803/Mds/2011 on the file of the Income https://hcservices.ecourts.gov.in/hcservices/ Tax Appellate Tribunal, Chennai 'D' Bench for the assessmentyear 2007-08. 3. The appeal was admitted on 23.1.2013 on the followingsubstantial question of law :“Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the assessee isentitledfordepreciationoncivilconstruction/electrical fitting at a higherrate of depreciation applicable to thewindmill equipment at the rate of 80% byconcludingthatthesaidinstallations/construction were integralpart of the windmill ?” 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-VIII) //True Copy// RS To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. Chennai 'D' Bench. 2.The Commissioner of Income Tax, Chennai. Chennai. 3.The Commissioner of Income Tax (Appeals), Tiruchirapalli. Tiruchirapalli. 4.The Deputy Commissioner of Income Tax, Circle – II, Trichy. Circle – II, Trichy. +1cc to Mr. M.Swaminathan, Advocate, S.R.No. 72330 +1cc to Mr. S.Sridhar, Advocate, S.R.No. 71124 TCA.No.485 of 2012 PA(CO)GN(13/11/2019)