Commissioner Of Income Tax vs M/S. Brt Spinners Pvt. Ltd
2021 Latest Caselaw 13049 Mad

                                                                                     T.C.A.No.353 of 2015

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATE: 02.07.2021

                                                          CORAM:

                                     THE HON'BLE MR. JUSTICE M.DURAISWAMY
                                                      AND
                                     THE HON'BLE MRS.JUSTICE R.HEMALATHA

                                                    T.C.A.No.353 of 2015


                     Commissioner of Income Tax,
                     No.63, Race Course Road,
                     Coimbatore.                                                     ... Appellant
                                                             v.

                     M/s. BRT Spinners Pvt. Ltd.,
                     No.336, Pullakkadu Thottam,
                     Kombakkadupudur, Itchipatti Post,
                     Coimbatore – 641 668.
                     PAN: AAA CB 7320 D                                ... Respondent/Cross Objector


                               Appeal preferred under Section 260A of the Income Tax Act,

                     1961, against the order of the Income Tax Appellate Tribunal, Madras,

                     "A"           Bench,   dated   10.09.2014    in     C.O.No.61/Mds/2014           in

                     ITA.No.1675/Mds/2014 for the Assessment Year 2010-2011.




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                                                                                 T.C.A.No.353 of 2015

                                      For Appellant      : Mr. T.R.Senthil Kumar
                                                           Senior Standing Counsel

                                      For Respondent     : Mr.S. Sendamarai Kannan

                                                       JUDGMENT

(Judgment was delivered by M. DURAISWAMY, J.)

We have heard Mr.T.R.Senthil Kumar, learned Senior Standing

Counsel for the appellant/Revenue and Mr.S.Sendamarai Kannan,

learned counsel for the respondent.

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 10.09.2014 made in C.O.No.61/Mds/2014 in

ITA.No.1675/Mds/2014 on the file of the Income Tax Appellate

Tribunal, Chennai, "A" Bench (for brevity, the Tribunal) for the

Assessment Year 2010-2011.

3. The appeal was admitted on the following substantial question

of law:-

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“Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the proceeds realized by the assessee on sale of Certified Emission Reduction Credit, which the assessee had earned on the Clean Development mechanism in its wind energy operations, is a capital receipt and not taxable?”

4. The learned Senior Standing Counsel appearing 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.

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 question of law framed is left open. In the event the tax effect

in this case is above the threshold limit fixed in the said Circular, liberty

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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.]
                     Index : Yes/No                                       02.07.2021
                     Internet : Yes
                     gv

                     To

The Income Tax Appellate Tribunal, Chennai,"A" Bench

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M. DURAISWAMY, J.

and R.HEMALATHA,J

gv

T.C.A.No.353 of 2015

02.07.2021

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