Madras High Court
The Commissioner Of Income Tax vs M/S.Ennore Port Ltd on 18 June, 2021
T.C.A.No.831 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.06.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.831 of 2013
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Ennore Port Ltd.
23, Rajaji Salai, Chennai. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 11.05.2012 in I.TA.No.237/Mds/2012, Assessment
Year 2004-05.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.N.V.Balaji
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T.C.A.No.831 of 2013
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.N.V.Balaji, 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 11.05.2012 made in I.TA.No.237/Mds/2012 on the file of the
Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the
Tribunal) for the Assessment Year 2004-05.
3.The appellant/Revenue has raised the following substantial
questions of law in the above appeal :
“1.Whether on the facts and in the
circumstances of the case, the Income Tax Appellate
Tribunal was right in holding that the expenditure
relating to prior period interest amounting to
Rs.1,12,74,194/- is to be allowed u/s.37?
2.Whether on the facts and in the
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T.C.A.No.831 of 2013
circumstances of the case, the Income Tax Appellate
Tribunal was right in holding that the depreciation
on port creation expenses amounting to Rs.36.70
lakhs are to be allowed inspite of the fact the same
was not classified in the Appendix-I of the
depreciation table under Income Tax Rules?
3.Whether on the facts and circumstances of
the case, the port creation charges can be termed as
a building or plant and machinery for claiming
depreciation?”
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.
5.In the light of the said submissions, the above Tax Case Appeal
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T.C.A.No.831 of 2013
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.]
18.06.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Chennai, “C” Bench
2.The Commissioner of Income Tax,
Chennai.
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T.C.A.No.831 of 2013
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.831 of 2013
18.06.2021
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