The Commissioner Of Income Tax, Trichy v. M/S.asian Handloom, Karur

In the High Court of Judicature at Madras Dated : 16.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.740 of 2010 The Commissioner of Income Tax, Trichy ... Appellant/Respondent Vs M/s.Asian Handloom, Karur. ...Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 20.11.2009 made in ITA.No.2291/Mds/2008 on thefile of the Income Tax Appellate Tribunal, Madras 'A' Bench forthe assessment year 2005-06, against the Order dated 22/10/2008 made in ITA No.251/2007-08on the file of the Commissioner of income Tax (Appeals),Tiruchirapalli, against the order dated 20/12/2007 on the fileof the Deputy Commissioner of Income Tax Circle-II,Tiruchirappalli in PAN No. . For Appellant : Ms.S.Premalatha, JR.SC for M.Swaminathan For Respondent : Mr.N.Quadiiz Huseyn Judgment was delivered by T.S.Sivagnanam,J We have heard Ms.S.Premalatha, learned Junior StandingCounsel, for the appellant – Revenue and Mr.V.Sundareswaran,learned counsel appearing for the respondent - assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated20.11.2009 made in ITA. No.2291/Mds/2008 on the file of theIncome Tax Appellate Tribunal, Madras 'A' Bench for theassessment year 2005-06. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 16.8.2010 on the followingsubstantial questions of law : “i. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the depreciation atthe rate of 80% that is applicable to thewindmill is allowable on the cost of civilworks and electrical fittings ? Andii. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the depreciation isallowable on the cost of land developmentexpense?” 4. The learned Junior 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 questions of law framed are 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. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Madras 'A' Bench. Madras 'A' Bench. 2.The Commissioner of Income Tax (Appeals), Tiruchirappalli. Tiruchirappalli. 3.The Deputy Commissioner of Income -Tax, Circle-II, Tiruchirappalli. Tiruchirappalli. +1cc to Mr.M.Swaminathan, Advocate Sr.70023 +1cc to Mr.N.Quadiiz Hoseyn, Advocate Sr.70959 TCA.No.740 of 2010 nr[co]srg 01/11/2019