The Commissioner Of Income Tax, Chennai v. M/S.blow Packaging (India) Pvt. Ltd

In the High Court of Judicature at Madras Dated : 28.08.2019Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.321 and 322 of 2018 The Commissioner of Income Tax,Chennai. ...Appellant/AppellantVs M/s.Blow Packaging (India) Pvt. Ltd.,No.55-D, SIDCO Industrial Estate, Ambattur,Chennai - 600 098.PAN: ...Respondent/Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 26.09.2017 made inITA.Nos.2288/Mds/2016 and 336/Mds/2017 on the file of the IncomeTax Appellate Tribunal, Chennai 'B' Bench for the assessmentyears 2003-04 and 2004-05 against the order dated 24.11.2016made in New No. DITA.42KIT(A)-1/2009-2010(ITA 657/2009-2010) onthe file of the Commissioner of Income Tax, Chennai for theAssessment year 2004-2005 against the order dated 12.05.2016made in I.T.A. No. 283/2008-2009/A-III(New No. ITA.Nos.53/CIT(A)-1/2008-2009) on the file of the Commissioner of Income Tax(Appeals) Chennai 34 for the Assessment year 2003-2004 againstthe order dated 31.12.2009 made in AAACB3145L on the file of theAssistant Commissioner of Income Tax, Company Circle -I(2)(I/C)chennai 34 for the Assessment year 2004-2005 and against theorder dated 11.12.2008 made in AAACB3145L/BX6-384 on the file ofthe Income Tax Officer(OSD) Company Circle 1(2) Chennai for theAssessment year 2003-2004. For Appellant:Mr.T.Ravikumar, SSC assisted by Ms.R.Hemalatha, SSCFor Respondent:No appearanceCOMMON JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.Ravikumar, learned Senior Standing Counselassisted by Ms.R.Hemalatha, learned Standing Counsel appearingfor the appellant – Revenue. https://hcservices.ecourts.gov.in/hcservices/ 2.These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 26.09.2017 made in ITA.Nos.2288 and 336/Mds/2016 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment years 2003-04 and 2004-05. 3.The appeals were admitted on 26.06.2018 on the followingsubstantial questions of law : “i.Whether the Tribunal erred in lawsubstantially in holding that the respondentassessee had not lost its character of small scaleundertaking as per Section 11B of the Industries(Development and Regulation) Act, 1951 and was,hence, eligible for claiming deduction underSection 80IB of the Income Tax Act, 1961, eventhough the total investment in plant and machineryin its two units had exceeded the threshold limitset by the relevant statutory provisions?ii.Whether the Tribunal erred in law in holdingthat if an assessee satisfied the conditions ofbeing a small scale industrial undertaking in thefirst year, it was not necessary for the assesseeto satisfy the conditions in each subsequent yearof claim?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. s/d- Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax (Appeals)I, Chennai 34. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. s/d- Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax (Appeals)I, Chennai 34. 3.The Assistant Commissioner of Income Tax, Company Circle-1(2)(I/C) Chennai 34.(I/C) Chennai 34. +1 CC to Mr.T.Ravikumar, Advocate sr 73654. TCA.Nos.321 and 322 of 2018SR(CO)SP(06/11/2019)