Commissioner Of Income Tax vs M/S.Arun Textiles P Ltd
2021 Latest Caselaw 9050 Mad

                                                       T.C.A.No.542 of 2013

           IN THE HIGH COURT OF JUDICATURE AT MADRAS

                            DATED : 01.04.2021

                                 CORAM

            THE HON'BLE MR. JUSTICE M.DURAISWAMY
                             AND
           THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI

                        T.C.A.No.542 of 2013

Commissioner of Income Tax,
Tiruppur.                                        ... Appellant
                                   Vs.

M/s.Arun Textiles P Ltd.,
80 Perumal Koil Street,
Tirupur.                                         ... Respondent

      Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“B” Bench, dated 11.08.2011 in I.TA.No.569/Mds/2011, Assessment
Year 2007-08.


      For Appellant     : Mr.T.R.Senthil Kumar
                          Senior Standing Counsel
                          and Mrs.K.G.Usha Rani
                          Standing Counsel

      For Respondent    : Mr.R.Sivaraman




Page 1/5
                                                         T.C.A.No.542 of 2013

                             JUDGMENT

(Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.T.R.Senthil Kumar, learned Senior Standing

Counsel and Mrs.K.G.Usha Rani, learned 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 11.08.2011 made in I.TA.No.569/Mds/2011 on the file of the

Income Tax Appellate Tribunal, Chennai, “B” Bench (for brevity, the

Tribunal) for the Assessment Year 2007-08.

3.The appeal was admitted on 28.10.2013 on the following

substantial questions of law:

“1.Whether under the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was right in holding that profits of the windmill for the purpose of computing deduction under Section 80 IA is to be determined on

Page 2/5 T.C.A.No.542 of 2013

the basis of price of Rs.3.50 per unit which the assessee otherwise would have paid, if it had bought from open market particularly when the assessee could realize only Rs.2.70 per unit for the supply made to the Tamil Nadu Electricity Board?

2.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in holding that the applicability of market rate as contemplated under Section 80 IA (8) is not to be adopted when the rates are regulated by the authorities like Electricity Board?”

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.

Page 3/5 T.C.A.No.542 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.]   [T.V.T.S., J.]
Index : Yes/No                                     01.04.2021
Internet : Yes
mkn


To

1.The Income Tax Appellate Tribunal, Chennai, “B” Bench

2.The Commissioner of Income Tax, Tiruppur.

Page 4/5 T.C.A.No.542 of 2013

M.DURAISWAMY, J.

and T.V.THAMILSELVI, J.

mkn

T.C.A.No.542 of 2013

01.04.2021

Page 5/5