Madras High Court
The Commissioner Of Income Tax vs M/S.Sun Metal Factory (I) Pvt. Ltd on 26 April, 2021
T.C.A.No.205 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.04.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.205 of 2013
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Sun Metal Factory (I) Pvt. Ltd.,
L-3, SIDCO Industrial Estate,
Kodungaiyur,
Chennai – 600 118. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“D” Bench, dated 08.04.2011 in I.TA.No.1228/Mds/2010, Assessment
Year 1999-2000.
For Appellant : Mr.J.Narayanaswamy
Senior Standing Counsel
For Respondent : Mr.R.Sivaraman
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T.C.A.No.205 of 2013
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.J.Narayanaswamy, learned Senior Standing
Counsel for the appellant/Revenue and Mr.R.Sivaraman, learned counsel
for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 08.04.2011 made in I.TA.No.1228/Mds/2010 on the file of the
Income Tax Appellate Tribunal, Chennai, “D” Bench (for brevity, the
Tribunal) for the Assessment Year 1999-2000.
3.The appeal was admitted on 26.07.2013 on the following
substantial questions of law:
“1.Whether on the facts and in the
circumstances of the case, the Income Tax Appellate
Tribunal was correct in holding that Section 150
cannot enlarge the scope of Section 149 which givs
the time limit for issuance of notice?
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T.C.A.No.205 of 2013
2.Whether on the facts and in the
circumstances of the case, the Income Tax Tribunal
was correct in quashing the reassessment
proceedings initiated by the assessing officer to give
effect to the direction of the CIT(A) citing the
limitation for the reassessment given under Section
149 of the Income Tax Act despite the fact that
Section 150 of the Income Tax Act specially provides
for no time limit for reassessment directed by
Appellate Orders?”
4.The learned Senior Standing Counsel for the appellant submits
that the above appeal is not pursued by the Revenue on account of the
Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued
by the Central Board of Direct Taxes. By the said Circular, the monetary
limit for filing or pursuing an appeal before the High Court has been
increased to Rs.1 crore. It is further submitted that the tax effect in this
case is less than the threshold limit.
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T.C.A.No.205 of 2013
5.In the light of the said submissions, the above Tax Case Appeal
is dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed are left open. In the event the tax
effect in this case is above the threshold limit fixed in the said
Circular, liberty is granted to the Revenue to make a mention to this
Court to restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
26.04.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Chennai, “D” Bench
2.The Commissioner of Income Tax,
Chennai.
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T.C.A.No.205 of 2013
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.205 of 2013
26.04.2021
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