The Commissioner Of Income Tax,Chennai-600 034 v. M/S.kader Investment & Training Co.(P) Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.10.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.450 of 2009 The Commissioner of Income Tax,Chennai-600 034 ... Appellant vs M/s.Kader Investment & Training Co.(P) Ltd.,3/284, Muttukadu Road,Neelangarai,Chennai-600 041 ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalChennai 'B' Bench, dated 28.11.2008 in ITA No.1675/Mds/2003, forthe Assessment year 2000-01 preferred against the order ofCommissionerofIncomeTax,(Appeals)-IIIChennai,dated:03/07/03 directed agaist the order dated:31/01/2003 passedby the Income Tax, Officer, Company ward-II-1, Chennai. For Appellant:Mr.Karthik RanganathanFor Respondent :Mr.A.S.Sriraman JUDGMENT [Judgement of the Court was delivered by T.S.Sivagnanam, J.] This appeal by the Revenue is directed against theorder passed by the Income Tax Appellate Tribunal, Madras 'B'Bench, dated 28.11.2008 in ITA No.1675/Mds/2003, for theAssessment year 2000-01. 2.Heard Mr.Karthik Ranganathan, learned Counsel for theappellant/Revenue and Mr.A.S.Sriraman, learned Counsel for theRespondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 3.This Appeal has been admitted on 06.07.2009, on thefollowing Substantial Questions of Law: "(i)Whether in the facts and circumstancesof the case, the Tribunal was right inremitting the matter to the assessing officerto await the outcome of the final writpetition. Without applying its mind on whetherthe issue in question will have no bearing onthe assessee's case? (ii)Whether on the facts and circumstancesof the case, the deduction u/s.80HHC can begranted ignoring the negative figure withrespect to profits of the business, taking onlythe profits on sale of export incentives intoaccount?” 4.We have perused the order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2008, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Questions of Law, framed forconsideration, are left open. No costs. The Revenue is atliberty to seek for restoration of appeal if at a later point oftime, it is found that the tax effect is above the thresholdlimit. Sd/- Assistant Registrar(CS IV) To 1.The Income Tax Appellate Tribunal Madras 'B' Bench. 2.The Commissioner of Income Tax,Chennai-34 3.The Commissioner of Income Tax(Appeals)IIIChennai 4.The Income Tax Officer,Company ward.II-1,Chennai. +1cc to Mr.Karthik Ranganathan, Advocate, S.R.No.73810 T.C.A.No.450 of 2009PP(CO)GSP(26/11/2018)