The Honourable Mr.justice T.s.sivagnanamandthe Honourable Mrs.justice V.bhavani Subbaroyantax Case Appeal Nos.427 To 429 Of 2013Commissioner Of Income Tax,Chenn v. M/S.muthupillais

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 22.08.2019CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYANTax Case Appeal Nos.427 to 429 of 2013Commissioner of Income Tax,Chennai. ..Appellant/Appellant in allAppeals -vs- M/s.Muthupillais 1918,96, Thirunallar Road, Karaikal. ..Respondent/Respondent in all Appeals Appeals under Section 260A of the Income-tax Act, 1961,against the common order dated 23.11.2012, on the file ofthe Income-tax Appellate Tribunal 'C' Bench, Chennai, inI.T.A.Nos.895 & 896/Mds/2009 and 642/Mds/2011 for theassessment years 2004-05, 2005-06 and 2006-07 respectivelyagainst the Order of the Commissioner of Income Tax(Appeals), No.44, Williams Road, Cantonment, Tiruchirapalliorder dated 2.03.09, 02.03.19 &10.01.2011 made in ITANo.682/06-07, 249/07-08, 249/07-08 and 221/08-09 for theAssessment Year 2004-05, 2005-06, 2006-07 and against theOrder of the Income Tax Officer, Ward -I(1), Nagapattinam,Deputy Commissioner of Income Tax, Circle - I, Thanjavurand The Income Tax Officer, Ward 1 (3), Thanjavur made inPAN No./GI No.AAKFM 2034Q/M-496, GIR No/PAN-M.318/ & GIR No./PAN-318-M order dated 29.12.2006,30.11.2007 & 24.12.2008 respectively.For Appellant: Mr.T.R.Senthil Kumar,Senior Standing Counselassisted by Ms.K.G.Usharani,Junior Standing Counsel For Respondent:Mr.A.S.SriramanFor Mr.S.SridharCOMMON JUDGMENT(Delivered by T.S.Sivagnanam, J.) These appeals filed by the appellant/Revenue underSection 260A of the Income-tax Act, 1961, are directedagainst the common order dated 23.11.2012, passed by theIncome-tax Appellate Tribunal 'C' Bench, Chennai, inI.T.A.Nos.895 & 896/Mds/2009 and 642/Mds/2011 for theassessment years 2004-05, 2005-06 and 2006-07 respectively. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeals were admitted on 25.11.2013, on thefollowing substantial questions of law:- “(i) Whether on the facts and in thecircumstances of the case the Tribunal wasright in holding that the assessee who isrunning the business of bakery is entitledfor deduction under Section 80IB by treatingthe activity of baking and processing of fooditems as manufacturing or production of goodsin the light to the decision of the Hon'bleSupreme Court decision in the case of IndianHotels Co.Ltd. 245 ITR 538 (SC) wherein it isheld that foodstuffs prepared by cooking orany other mode does not amount manufacture orproduction? (ii) Whether on the facts and in thecircumstances of the case the Tribunal wasright in holding that, the Assessing Officerhad not withdrawn the deduction under Section80IB on the ground that the assessee'sactivity of baking bread, cakes, etc., is nota manufacture?”3.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned JuniorStanding Counsel for the appellant and Mr.A.S.Sriraman,learned counsel for Mr.S.Sridhar, learned counsel for therespondent.4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by theRevenue on account of the low tax effect in terms ofCircular No.17/2019, dated 08.08.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the HighCourt has been increased to Rs.1 Crore. It is furthersubmitted that the tax effect in this case is less than thethreshold limit. 5. In the light of the said submissions, the above taxcase appeals are dismissed on account of the low taxeffect. The substantial questions of law framed are leftopen. In the event the tax effect is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore theappeals to be heard and decided on merits. No costs.abr Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant Registrar To 5. In the light of the said submissions, the above taxcase appeals are dismissed on account of the low taxeffect. The substantial questions of law framed are leftopen. In the event the tax effect is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore theappeals to be heard and decided on merits. No costs.abr Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant Registrar To 1.The Income-tax Officer, Ward 1(3), Thanjavur. 2.The Income-tax Officer, Ward I(1), Nagapattinam. 3.The Deputy Commissioner of Income-tax Circle-I, Thanjavur. Thanjavur. 4.The Commissioner of Income-tax (Appeals), No.44, Williams Road, Cantonment, Tiruchirapalli-620 001. No.44, Williams Road, Cantonment, Tiruchirapalli-620 001. 5.The Income-tax Appellate Tribunal 'C' Bench, Chennai. 6. The Commissioner of Income Tax, Chennai. +1cc to Mr.S.Sridhar, Advocate, SR.No.71824 +1cc to Mr.T.R.Senthil Kumar, Advocate, SR.No.72303 T.C.A.Nos.427 to 429 of 2013 Kak(31/10/2019)