The Commissioner Of Income Tax, Chennai v. M/S.sicgil India Ltd., Chennai-2

In the High Court of Judicature at Madras Dated : 30.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.427 of 2016 The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.SICGIL India Ltd., Chennai-2. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 29.9.2015 made in ITA.No.1174/Mds/2015 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2010-11 as against the order dated20/02/2015 and 13/05/2015 of the Commissioner of Income TaxAppeals, Chennai in GIR. No/PAN No. for the assessmentyear 2010-2011 and as against the order dated 20/03/2013 of theAssistant Commissioner of Income Tax, Company Circle, Chennai inPAN/GIR.No.AAACS3767M for the assistant year 2010-2011. For Appellant :Mr.J.Narayanasamy, SSC For Respondent :Mr.A.S.Sriraman for S.Sridhar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.J.Narayanasamy, learned Senior StandingCounsel appearing for the appellant – Revenue andMr.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 dated29.9.2015 made in ITA.No. 1174/Mds/2015 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for the 1/3 https://hcservices.ecourts.gov.in/hcservices/ 3. The Revenue has filed this appeal by raising the followingsubstantial question of law :“Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the cylinder transportcharges received for delivery of thefinished product has direct nexus with theindustrial undertaking and is integral partof the turnover for the purpose ofcomputation of deduction under Section80IB ?” 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 raised 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. -s/d- Assistant RegistrarTrue Copy To1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax, (Appeals)-15Nungambakkam Chennai-84 2/3 3.The Assistant Commissioner of Income TaxCompany Circle-V-VI(B)Mahatma Gandhi RoadChennai-34 +1 cc to Mr.S.Sridhar, advocate sr76095+1 cc to Mr.T.R.Senthil kumar Senior Standing counsel for Income Tax sr75710 TCA.No.427 of 2016 svI(co)aa01/11/2019 3/3