The Commissioner Of Income Tax, Coimbatore v. M/S.sri Velayudhaswamy Spinning Mills P.ltd

CORAM THE HON'BLE MR.JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.NO.549 OF 2013 The Commissioner of Income Tax,Coimbatore.... AppellantVs. M/s.Sri Velayudhaswamy Spinning Mills P.Ltd.,207/86, Mangalam Road,Karuvampalayam, Tirupur – 641 604. ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “D” Bench, dated 13.07.2011 in I.TA.No.850/Mds/2011,Assessment Year 2007-08.Against the Order passed by the Commissioner of Income Tax(Appeals)-II,Coimbatoredated22.02.2011madeinITA.No.487C/2009-10 for the Assessment year 2007-08. And as against the order passed by Deputy Commissioner ofIncome Tax, Company circle, Tirupur, dated 24.12.2009 made inPA.No./GIR.No.AADC50676C for the Assessment year 2007-08. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Mrs.K.G.Usha Rani, learned Standing Counsel for theappellant/Revenue and Mr.R.Sivaraman, learned counsel for therespondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 13.07.2011 made in I.TA.No.850/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai, “D” Bench(for brevity, the Tribunal) for the Assessment Year 2007-08. 3.The appeal was admitted on 08.11.2013 on the followingsubstantial questions of law: “1.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was correct in law in holdingthat the sale price of the electricity was to betaken at Rs.3.50 paise per unit even though theassessee was bound to sell at Rs.2.70 paise perunit to TNEB as per the contract? 2.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was correct in law in holdingthat the applicability of market rate ascontemplated under Section 80IA(8) is notapplicable when the rates are regulated by theauthorities like electricity board?” 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 08.08.2019 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 as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are 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. Sd/- Assistant Registrar(CS IV) //True Copy// mkn Sub Assistant Registrar https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai, “D” BenchChennai, “D” Bench 2.The Commissioner of Income Tax,Coimbatore.Coimbatore. 3.The Commissioner of Income Tax (Appeals)-II,Coimbatore.Coimbatore. 4.The Deputy Commissioner of Income Tax,Company Circle, Tirupur.Company Circle, Tirupur. T.C.A.No.549 of 2013 LN(CO)CS/10/06/2021