The Commissioner Of Income Tax, Coimbatore v. M/S Elgi Ultra Industries Ltd.,Elgi House, Trichy Road,Coimbatore – 641 018

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R.HEMALATHA The Commissioner of Income Tax, Coimbatore.... Appellant v. M/s Elgi Ultra Industries Ltd.,Elgi House, Trichy Road,Coimbatore – 641 018.... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "C" Bench, dated 18.11.2013 in ITA.No.1616/Mds/2013 forthe Assessment Year 2010-2011. As against the Order dated 02.07.2013 by the Office of theCommissioner of Income Tax (Appeals)-I, Coimbatore inP.A.No./GIR.No. AAACE4566G for the Assessment Year 2010-11 andagainst the order dated 28.02.2013 by the Office of the Deputycommissioner of Income Tax, Company Circle – I (I), Coimbatorein PA.No/GIR.No. AAACE4566 G For the Assessment year 2010-11. For Respondent : K. Krishnamoorthy JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) We have heard Mr. T.R.Senthil Kumar, learned SeniorStanding Counsel for the appellant/Revenue and Mr. K.Krishnamoorthy, learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainsttheorderdated18.11.2013madeinI.T.A.No.1616/Mds/2013 on the file of the Income Tax Appellate https://hcservices.ecourts.gov.in/hcservices/ Tribunal, Chennai, "C" Bench (for brevity, the Tribunal) for theAssessment Year 2010-2011. 3. The above appeal was admitted on the followingsubstantial questions of law: “(i)Whetherunderthefactsandcircumstances of the case the Income TaxAppellate Tribunal was correct in allowing theclaim of Loss on sale of actionable claims as‘business loss? (ii) Whether under the facts andcircumstances of the case, Income Tax AppellateTribunal was correct in holding that thetransaction was a sham transaction entered intowith the sole objective of evading tax,particularly to divert the loss to its sisterconcern? " 4. The learned Senior Standing Counsel appearing for theappellant submits that the above appeal is not pursued by theRevenue on account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 crore. It is further submitted that the taxeffect in this case is less than the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed is left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Assistant Registrar (CCC) Rj To 1.The Income Tax Appellate Tribunal, Chennai,"C" Bench. Chennai,"C" Bench. https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals) -I, Coimbatore. 3.The Deputy Commissioner of Income Tax, Company Circle – I (I), Coimbatore. T.C.A.No.911 of 2014 SSN(CO)GN(13/07/2021)