The Commissioner Of Income Tax, Coimbatore v. M/S.indo Shell Cast P. Ltd., Coimbatore-21

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 30.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax, Coimbatore ...Appellant/RespondentVs.M/s.Indo Shell Cast P. Ltd.,Coimbatore-21....Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 28.8.2015 made in ITA.No.209/Mds/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2009-10, against the Appellate order of theCommissioner of Income Tax (Appeals) -I, Coimbatore, dated01.11.2012 and made in Appeal No.348/11-12 for the assessmentyear 2009-10; and against the Assessment order of the AssistantCommissioner of Income Tax, Company Circle -1(1), Coimbatore,dated 28.12.2011 and made in PAN.No./GIR.No.AAAC14299N for theassessment year 2009-10. We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Ms.Sree Lakshmi Valli,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 dated28.8.2015 made in ITA.No. 209/Mds/2013 on the file of the IncomeTax Appellate Tribunal, Chennai 'B' Bench for the assessmentyear 2009-10. 1/2 https://hcservices.ecourts.gov.in/hcservices/ justified in law in holding that the loss onderivative transactions is trading lossthereby over viewing the fact that when noactual delivery has taken place, thetransactions in question fall within thedefinition of speculative transaction as perSection 43(5) of the Income Tax Act ? andii. Whether, on the facts and in thecircumstances of the case, the Tribunal isjustified in law in following the ratio ofthe decision in the case of M/s.MagesticExports when the facts of the case are notapplicable to the present case ?” 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. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench, Chennai. 2.The Commissioner of Income Tax, Coimbatore. 3.The Commissioner of Income Tax(Appeals) -I, Coimbatore.4.The Assistant Commissioner of Income Tax,Company Circle 1(1), Coimbatore. +1 cc to M/s.T.R.Senthil Kumar,Advocate Sr.No. 75718+1 cc to M/s.Sree Lakhsmi Valli, Advocate Sr.No.75982AKM/21.11.19/2P-7C / TCA.No.355 of 2016 2/2 https://hcservices.ecourts.gov.in/hcservices/