The Commissioner Of Income-Tax-I,Coimbatore v. M/S.elgi Tread (India) Ltd

The Commissioner of Income-Tax-I,Coimbatore. .. Appellant/Appellant Vs M/s.Elgi Tread (India) Ltd., 2000 Trichy Road,Coimbatore-641 045 Prayer : Tax Case (Appeal) is filed under Section 260-A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Chennai 'A' Bench, dated 24.11.2008 passedin I.T.A. No.1974/Mds/2007 for the assessment year 1997-98, andagainst the order of the Commissioner of Income Tax (Appeals)I,Coimbatore dated 04/06/2007, Appeal No.394/06-07, and againstthe order of the Assistant Coimbatore of Income Tax, Income TaxDepartment, Coimbatore, dated 29.12.2006, PAN/GIR No. . For Appellant : Mr.T.R.Senthilkumar Assisted by K.G.Usha Rani Sr.Standing counselFor Respondent: Mr.M.P.Senthikumar (Judgment of the Court was delivered by DR.VINEET KOTHARI, J.) 2. The Revenue has preferred this appeal challenging theorder passed by the Income Tax Appellate Tribunal Chennai 'A'Bench, dated 24.11.2008 passed in ITA No.1974/Mds/2007 for theAssessment Year 1997-98. 3. The above appeal has been admitted on 30.06.2009 on thefollowing substantial question of law : https://hcservices.ecourts.gov.in/hcservices/ “Whether on the facts and in thecircumstances of the case the AppellateTribunal was right in law in holding that,the interest under Section 234-D cannot belevied for the period prior to 1.6.2003 isvalid?'' 4. It may not be necessary for us to answer the abovesubstantial question of law, as the monetary limit in thisappeal is lesser than the amount fixed by the circularinstructions issued by the Central Board of Direct Taxes inCircular No.3/2018 dated 11.07.2018. The said circular coversthe issue regarding chargeability of interest also. Inparagraph 4 of the said Circular, it has been stated that incase the chargeability of interest is the issue under dispute,the amount interested shall be the tax effect. Since thequantum of interest charged under Section 234-D of the IncomeTax Act in the present case is being Rs.13,61,223/- which isless than Rs.50,00,000/- as stated in Circular No.3/2018 dated11.07.2018, the Tax Case (Appeal) is liable to be dismissed. 5. Accordingly, the present appeal is dismissed. No costs.The substantial question of law is left open for considerationin an appropriate case. Sd/- Assistant Registrar(CCC) //True copy// arrTo Sub Assistant Registrar 1. The Income Tax Appellate Tribunal, Chennai 'A' Bench 2. The Commissioner of Income Tax, (Appeals) I, Coimbatore. 3. The Commissioner of Income Tax Income Tax Department, Coimbatore. +1cc to Mr.T.R.Senthilkumar, Advocate SR.No.19752 +1cc to Mr.Philip George, Advocate SR.No.19823 BR(CO)GMY(02/04/2019) https://hcservices.ecourts.gov.in/hcservices/