Madras High Court
Commissioner Of Income Tax vs M/S. Kausalya Aquamarine on 21 January, 2021
T.C.A.Nos. 1346 & 1347 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 21.01.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.Nos. 1346 & 1347 of 2010
Commissioner of Income Tax,
Chennai. ... Appellant in both TCAs
v.
M/s. Kausalya Aquamarine,
Products Exports Pvt. Ltd.,
20, Palani Andavar Street,
Chindadripet, Chennai - 600 002. ... Respondent in both TCAs
T.C.A. No. 1346/2010 : Appeal preferred under Section 260A of the
Income Tax Act, 1961, against the order of the Income Tax Appellate
Tribunal, Madras, “A” Bench, dated 18.12.2009 in
ITA.No.1499/Mds/2008 for the Assessment Year 2001-02.
T.C.A. No. 1347/2010 : Appeal preferred under Section 260A of the
Income Tax Act, 1961, against the order of the Income Tax Appellate
Tribunal, Madras, “A” Bench, dated 18.12.2009 in C.No.5/Mds/2009
A/o. ITA.No.1499/Mds/2008 for the Assessment Year 2001-02.
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T.C.A.Nos. 1346 & 1347 of 2010
For Appellant : Mr.S. Rajesh
for Mr.Karthik Ranganathan
Standing Counsel
For Respondent : J. Narayana Swamy
COMMON JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.S. Rajesh, learned Standing Counsel for the
appellant/Revenue and Mr. J. Narayana Swamy, learned counsel for the
respondent.
2. These appeals, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) are directed against the
order dated 18.12.2009 made in ITA.No.1499/Mds/2008 & C.No.5/
Mds/2009 A/o. ITA.No.1499/Mds/2008 respectively on the file of the
Income Tax Appellate Tribunal, Chennai, ''A'' Bench (for brevity, the
Tribunal) for the Assessment Year 2001-02.
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T.C.A.Nos. 1346 & 1347 of 2010
3. In the above appeals, the assessee has raised the following
Substantial Questions of Law for consideration:
“(i) Whether on the facts and in the
circumstances of the case, the Tribunal was right in
holding that the assessee is entitled to deduction
u/s. 80HHC on DEPB benefits even though the
condition thereof have not been satisfied and in
remitting the matter back to the file of the Assessing
Officer for consideration afresh in the light of the
guidelines laid down by the Special Bench in
Topman Exports (318 ITR AT 87) ? and
(ii) Whether on the facts and in the
circumstances of the case, the Income Tax Tribunal
was right in deleting the interest u/s.234D without
observing that the section is applicable to all
assessment years for which regular assessments
have been completed after 01.10.2003 ?”
4. The learned Standing Counsel appearing for the appellant
submits that the above appeals are 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
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T.C.A.Nos. 1346 & 1347 of 2010
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 respective cases is less than the threshold limit.
5. In the light of the said submissions, the above Tax Case Appeals
are dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed is left open. In the event the tax
effect in the respective cases 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 appeals to be heard and decided on merits. No costs.
[M.D., J.] [T.V.T.S., J.]
21.01.2021
Index : Yes/No
Internet : Yes
Rj
To
The Income Tax Appellate Tribunal,
Chennai, “A” Bench
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T.C.A.Nos. 1346 & 1347 of 2010
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
Rj
T.C.A.Nos. 1346 & 1347 of 2010
21.01.2021
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