The Commissioner Of Income Tax, Chennai v. M/S.lakshmi Machine Works, Periyanayakanpalayam, Coimbatore

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 15.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal Nos.262 to 268 of 2012 The Commissioner of Income Tax, Chennai...Appellant (in all)VsM/s.Lakshmi Machine Works,Periyanayakanpalayam, Coimbatore...Respondent(in all) Common Prayer:APPEALS under Section 260A of the Income Tax Act,1961 against the common order dated 16.11.2007 made respectivelyin ITA.Nos.1464, 1465, 2356, 2468, 2660, 2661 and 1479/Mds/2005on the file of the Income Tax Appellate Tribunal, Chennai 'D'Bench respectively for the assessment years 2000-01, 2000-01,2001-02, 2001-02, 2000-01, 2000-01 and 2001-02 appeal filedagainst the commissioner of Income Tax Appeals I ,Madurai dated22.03.2005 in ITA.No.269/2002-2003 against the Commissioner ofIncome Tax (Appeal) I ,Madurai camp at Coimbatore inITA.No.180/2002-2003 against the order of Deputy commissioner ofIncome Tax in PAN/GIR.No.AAACL 5244 M for the Assessment Year2001-2002 against the Order of the Assistant Commissioner inPAN/GIR.No.AAACL 5244 M for the Assessment Year 2000-2001 on thefile of the Assistant commissioner of Income Tax Company CircleIV (2), Coimbatore. For Appellant:Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, SCFor Respondent:Mr.Vikram Vijayaraghvan forM/s.Subbaraya Aiyer PadmanabhanCOMMON JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.VikramVijayaraghavan, learned counsel appearing for the respondent –assessee. 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 16.11.2007 made respectively in ITA.Nos.1464, 1465, 2356,2468, 2660, 2661 and 1479/Mds/2005 on the file of the Income TaxAppellate Tribunal, Chennai 'D' Bench respectively for theassessment years 2000-01, 2000-01, 2001-02, 2001-02, 2000-01,2000-01 and 2001-02. 3. The appeals were admitted on 29.10.2012 on the followingsubstantial questions of law : “1. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the amount paid toemployees under VRS is allowable as adeductionongroundsofcommercialexpediency as against the provisions ofSection 35D as per which the said expenseshave to be allowed over a period of 5 yearsand not to be allowed as a deduction in full?2. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that remanding the issuerelating to inclusion of special trainingreceipt, repair/service charges, scrap sale,to the profits eligible for deduction underSection 80HHC to the Assessing Officer todecide in the light of case decided inVirudhunagar Textiles Mills 97 ITD 306 ?3. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that remanding the issuerelating to inclusion of income fromwindmillgenerationintotalturnover/eligible profits for computingdeduction under Section 80HHC to theAssessing Officer to decide in the light ofthe case decided in Virudhunagar TextilesMills 97 ITD 306 ? and4. Whether on facts and circumstances ofthe case, the Tribunal was right in holdingthat interest under Section 234B and C hadto be computed after setting off the broughtforward MAT credit, the Tribunal also heldthat interest under Section 234B and C hadto be computed after setting off the broughtforward MAT credit?” 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. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2.The Commissioner of Income Tax (Appeal) I ,Madurai camp atCoimbatore.3.The Deputy Commissioner of Income Tax (Appeal) I ,Maduraicamp at Coimbatore. 4.The Assistant commissioner of Income Tax Company Circle IV (2), Coimbatore. ks coA.SK(22/09/2020)