Madras High Court
The Principal Commissioner Of vs M/S.East Coast Constructions & on 9 March, 2021
TCA.No.56 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 09.3.2021
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MS.JUSTICE R.N.MANJULA
Tax Case Appeal No.56 of 2020
The Principal Commissioner of
Income Tax, Central-I, Chennai-34 ...Appellant
Vs
M/s.East Coast Constructions &
Industries Ltd., Chennai-6. ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against
the order dated 14.2.2018 passed by the Income Tax Appellate
Tribunal, Madras 'C' Bench, Chennai made in I.T.A.No.1431/Chny/2016
for the assessment year 2010-11.
For Appellant : Mr.T.R.Senthilkumar, SSC assisted by
Mrs.K.G.Usharani, JSC
For Respondent : Mr.G.Baskar
Judgment was delivered by T.S.SIVAGNANAM,J
This appeal has been filed by the Revenue under Section 260A of
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TCA.No.56 of 2020
the Income Tax Act, 1961 ('the Act' for brevity) challenging the order
dated 14.2.2019 made in I.T.A.No.1431/Chny/2016 on the file of the
Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for
brevity) for the assessment year 2010-11.
2. The Revenue has filed this appeal by raising the following
substantial questions of law:
“1. Whether, on the facts and in the
circumstances of the case, the Appellate
Tribunal is right in law in holding that the
assessee is eligible for deduction u/s 80IA(4)
of the Income Tax Act, 1961?
2. Whether, on the facts and in the
circumstances of the case, the Appellate
Tribunal is correct in law in holding that the
assessee is a 'developer' and not a 'contractor'
without appreciating the findings of the
Assessing Officer and therefore, considering
the assessee eligible for deduction u/s 80IA(4)
of the Income Tax Act, 1961?
3. Whether the Tribunal is correct in law
in deleting the disallowance made under
Section 14A of the Act by placing reliance on
the decision of the Hon'ble High Court of Delhi
in the case of Joint Investment Vs. CIT [372
ITR 694] for giving relief to the assessee by
ignoring that the above decision is still pending
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TCA.No.56 of 2020
in a higher forum for final decision ?
4. Whether the Tribunal is correct in law
in placing reliance on the assessee's own case
for the assessment year 2009-10 and deleting
the disallowance u/s 14A of the Act without
considering that the above decision was not
accepted by the Department and the matter
has not attained finality?
5. Whether the Tribunal is correct in law
in considering the UPS as intergral part of the
computer, whereas the computer can even
function without any UPS? And
6. Whether the Tribunal is correct in law
in allowing depreciation on UPS at 60%
treating it as an integral part of a computer
without appreciating that the UPS, which can
only be considered as an accessory used to
protect the unsaved data when there is a
power failure and can only be grouped under
the head 'office equipment'?”
3. We have heard Mr.T.R.Senthilkumar, learned Senior Standing
Counsel assisted by Mrs.K.G.Usharani, Junior Standing Counsel
appearing for the appellant/Revenue and Mr.G.Baskar, learned counsel
appearing for the respondent/assessee.
4. The learned Senior Standing Counsel for the appellant
submits that the above appeal is not pursued by the Revenue on
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TCA.No.56 of 2020
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
RS
account of the low tax effect in terms of Circular No.17/2019 dated
08.8.2019 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 on account of the low tax effect. The substantial questions
of law raised are left open. In the event the tax effect is above the
threshold limit fixed in the said circular, liberty is granted to the
Revenue to file a petition before this Court to restore the appeal to be
heard and decided on merits. No costs.
09.3.2021
To
The Income Tax Appellate Tribunal, 'C' Bench, Chennai.
TCA.No.56 of 2020
https://www.mhc.tn.gov.in/judis/
