The Commissioner Of Income Tax, Chennai v. Skm Animal Feeds & Foolds India Ltd., Erode-1

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 06.7.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.506 of 2011 The Commissioner of Income Tax, Chennai ...Appellant Vs SKM Animal Feeds & Foolds India Ltd., Erode-1. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 15.2.2008 made in ITA.No.2442/Mds/2005 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2002-03. Against the Order dates 10/08/2005made in Appeal no.232/05-06 on the file of the Commissioner ofIncome Tax(Appeals)-1 Coimbatore for the assessment year 2002-2003. Against the order dates 31/3/2005 made in PA NO/GIRNO.AAACCS9493E/2CCS012 on the file of the Deputy Commissioner ofIncome Tax Circle-1 Erode for the assessment year 2002-2003. for Mr.Muthukumar We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel and Ms.K.G.Usharani, learned Standing Counsel appearingfor the appellant – Revenue and Mr.G.Baskar, learned counselappearing for the respondent. 2. This 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 15.2.2008 made in ITA.No.2442/Mds/2005on the file of the Income Tax Appellate Tribunal, Chennai 'D'Bench (for brevity, the Tribunal) for the assessment year 2002-03. 3. The appeal has been admitted on 09.4.2012 on the followingsubstantial questions of law : “i. Whether, on the facts andcircumstances of the case, the assessee hadnot made deliberate suppression of sale byunder invoicing of sale with its sisterconcern without adhering to the agreementsand consequent claim of loss to the extentof Rs.51.27 lakhs can be allowed ? and(ii) Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the claim of loss onaccount of sale to its sister concern isallowable on commercial expediency ?” 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 questions of law framed are 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. To 1. The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2. The Commissioner of Income Tax (Appeals)-1, Coimbatore https://hcservices.ecourts.gov.in/hcservices/ 3. The Deputy Commissioner of Income Tax Circle-1, Erode TCA.No.506 of 2011 RSV(CO)RV(06/10/2020)