The Commissioner Of Income Tax Coimbatore v. M/S.shiva Texyam Ltd., (Formerly Known As Annamalai Finance Ltd.)

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 20.12.2018 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case (Appeal) No.624 of 2009 The Commissioner of Income Tax Coimbatore. .... Appellant Vs. M/s.Shiva Texyam Ltd., (Formerly known as Annamalai Finance Ltd.),252, Mettupalayam Road,Coimbatore – 641 043. .... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 09.01.2009 made inITA.No.663/(Mds)/2007 for the assessment year 2001-02, againstthe proceedings of the Commissioner of Income Tax-I, Coimbatorein C.No.120(14)/04-05/CIT I/CBE dated 12/1/2006 against theorder of the Assistant Commissioner of Income Tax CompanyCircle-I(2), Coimbatore in PAN/GIR.No. /A-23 dated19/3/2004 for the Assessment Year 2001-2002. For Appellant : Mr.T.R.Senthilkumar Sr.Standing Counsel assisted by Mrs.K.G.Usharani For Respondent : Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar PadmanabhanJ U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, Madras 'D' Bench, Chennai, dated https://hcservices.ecourts.gov.in/hcservices/ 09.01.2009 made in ITA.No.663/(Mds)/2007 for the assessment year2001-02 by raising the following substantial question of law:" Whether on the facts and in the circumstancesof the case, the Appellate Tribunal is right in lawin quashing the order passed under section 263 ofthe Income Tax Act, 1961, even though the assessingofficer without application of mind passed an orderwould be erroneous if it is based on an incorrectassumption of facts or incorrect application of lawor based on no insufficient materials?” 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. Sd/- Assistant Registrar(CS IV) //True Copy// slTo Sub Assistant Registrar 1.The Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai 2.The Commissioner of Income Tax-I, 67A Race Course Road, Coimbatore-18. 3.The Assistant Commissioner of Income Tax Company Circle I(2), Coimbatore. +1cc to M/S.Subbaraya Aiyar, Advocate Sr.89598+1cc to Mr.T.R.Senthilkumar, Advocate Sr.89267 rk[co]srg 25/01/2019