The Commissioner Of Income Tax, Coimbatore v. M/S.magna Electro Castings Ltd., Coimbatore-18

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.718 of 2016 The Commissioner of Income Tax, Coimbatore...Appellant/RespondentVs M/s.Magna Electro Castings Ltd.,Coimbatore-18....Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 16.10.2014 made in ITA.No.186/Mds/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2009-10 and against the Order of theCommissioner of Income Tax (Appeals -I),Coimbatore, dated18.12.2012 made in 358/11-12 and against the Order of theAssistant Commissioner of Income Tax Company Circle III,Coimbatore, dated 29.12.2011 made in Account No.AABCN 4711 E forthe Assessment 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. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated16.10.2014 made in ITA. No.186/Mds/2013 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for theassessment year 2009-10. 3. The appeal was admitted on 22.11.2016 on the followingsubstantial question of law :“Whether, on the facts and circumstancesof the case, the Income Tax Appellate https://hcservices.ecourts.gov.in/hcservices/ Tribunal is right in law in holding that thenotional loss on foreign currency loansraised for purchase of assets arising as aresult of change in the rate of foreignexchange as on the balance sheet date, isallowable as a revenue expenditure ?” 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 framed 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. Sd/- Assistant Registrar //True Copy// Sub Assistant RegistrarTo1. The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2. The Commissioner of Income Tax, (Appeals-I), Coimbatore. 3. The Assistant Commissioner of Income Tax,Company Circle -I(1), Coimbatore. Kak(18/10/2019)