The Commissioner Of Income Tax, Madurai v. M/S.thiagarajar Mills Ltd.,Madurai-8

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 20.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.432 to 435 of 2011 and MP.Nos.1,1 and 1 of 2011 The Commissioner of Income Tax, Madurai...Appellant Vs M/s.Thiagarajar Mills Ltd.,Madurai-8....Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 14.1.2011 made in ITA.Nos.1173 to1175/Mds/2010 and CO.No.71/Mds/2010 in ITA.No.1175/Mds/2010 onthe file of the Income Tax Appellate Tribunal, Chennai 'B' Benchrespectively for the assessment years 2002-03 to 2004-05 and2004-05 and against the order dated 21/04/2010, made inITA.Nos.0035/07-08, 0017/08-09, 0001/08-09 passed by theCommissioner of Income -Tax (Appeals) I, I/c. Madurai and We have heard Mr.M.Swaminathan, learned Senior StandingCounsel assisted by Ms.V.Pushpa, learned Standing Counselappearing for the appellant – Revenue and Mr.R.Srinivasan,learned counsel appearing for the respondent - assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 14.1.2011 made in ITA.Nos.1173 to 1175/Mds/2010 andCO.No.71/Mds/ 2010 in ITA.No.1175/Mds/2010 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench respectivelyfor the assessment years 2002-03 to 2004-05 and 2004-05. 3. The appeals were admitted on 31.10.2011 on the followingsubstantial questions of law : “TCA.No.432 of 2011 : Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in holding that theinterest under Section 234D cannot be leviedfor the period prior to 01.6.2003 is valid ?TCA.Nos.433 & 434 of 2011 : i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law inholding that the computation of deductionunder Section 80HHC had to be worked outwithout deducting the deduction available tothe assessee under Section 80IA of the Acteven though not considering Sub-Section 9Ainserted under Section 80IA with effect from01.4.1999 is valid ? andii. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in law in holding thatthe interest under Section 234D cannot belevied for the period prior to 01.6.2003 isvalid ? AndTCA.No.435 of 2011 :i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law insetting aside the order of the Commissionerof Income Tax (Appeals) and directed theAssessing Officer to grant interest underSection 244A of the Act is valid ? Andii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law indirecting the Assessing Officer to grantinterest under Section 244A of the Act eventhough the refund did not exceed 10% of thetax demand arising from the order ofassessment under Section 143(3) of the Act?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 the respectivecases is less than the threshold limit. 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. Consequently, the connectedMPs are also dismissed. 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 Appeals I, Madurai.3.The Assistant Commissioner of Income Tax, Company Circle I, Madurai.4.The Joint Commissioner of Income Tax, Company Circle I, Madurai.5.The Assistant Registrar, Income Tax, Appellate Tribunal, Besant Nagar, Chennai -90.6.The Director, Central Board of Direct Taxes, New Delhi.3.The Assistant Commissioner of Income Tax, Company Circle I, Madurai.4.The Joint Commissioner of Income Tax, Company Circle I, Madurai.5.The Assistant Registrar, Income Tax, Appellate Tribunal, Besant Nagar, Chennai -90.6.The Director, Central Board of Direct Taxes, New Delhi. +1 cc to M/s.M.Swaminathan,Advocate Sr.No. 70575 AKM/27.09.19/3P-8C / TCA.Nos.432 to 435 of 2011& MP.Nos.1,1 and 1 of 2011