The Commissioner Of Income Tax,Circle Xv,Chennai v. M/S.cauvery Enterprises

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 25.02.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax,Circle XV,Chennai. ... Appellant/ Appellant Vs. M/s.Cauvery Enterprises,No.8, 2[nd] Street,Ganapathy Colony,Chennai – 86. ... Respondent/ Respondent Tax Case Appeal preferred under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Chennai, “A” Bench, dated 11.12.2009 inI.TA.No.389/Mds/2009, Assessment Year 2002-03 against theorder passed by the Commissioner of Income Tax Appeals XII,121,Mahathma Ghandi Road, Nungambakkam,Chennai 34 made inITA.NO.536/07-08 DATED 28.11.2008 and against the order passedby the Assistant Commissioner of Income Tax,circle XV,Chennaimade in GIR NO/PAN NO. dated 31.12.2007. For Appellant : Mr.T.Ravikumar Senior Standing Counsel For Respondent : Mr.M.P.Senthil Kumar JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.)We have heard Mr.T.Ravikumar, learned Senior StandingCounsel for the appellant/Revenue and Mr.M.P.Senthil Kumar,learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainsttheorderdated11.12.2009madeinI.TA.No.389/Mds/2009 on the file of the Income Tax AppellateTribunal, Chennai, “A” Bench (for brevity, the Tribunal) forthe Assessment Year 2002-03. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 17.08.2010 on the followingsubstantial question of law: “Whether on the facts and in the circumstancesof the case, the Tribunal was right in decidingcontrary to the principles laid down in 251 ITR 323 (SC) when the assessee's activities does not amountto manufacture or produce of any article or thing?” 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.By the said Circular, the monetary limit for filing orpursuing an appeal before the High Court has been increased toRs.1 crore. It is further submitted that the tax effect inthis case is less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial question of law framed is leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Nocosts. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar mknTo 1.The Income Tax Appellate Tribunal, Chennai, “A” Bench 2.The Commissioner of Income Tax, Circle XV, Chennai. 3.The Commissioner of Income Tax Appeals XII,121,Mahathma Ghandi Road, Nungambakkam,Chennai 34 +1cc to Mr.T.Ravikumar , Advocate SR.No. 11556 +1cc to Mr.M.P.Senthil Kumar , Advocate SR.No.11307 BS COA.SK(23.03.2021)