Commissioner Of Income Tax vs Mm Forgings Ltd
2021 Latest Caselaw 17882 Mad

                                                                              T.C.A.No.39 of 2009

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 01.09.2021

                                                    CORAM :

                              THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
                                                     AND
                    THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP

                                               T.C.A.No.39 of 2009

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

                   MM Forgings Ltd.
                   Guindy House,
                   95, Anna Salai,
                   Chennai-32.                                                ...
                   Respondent

                   Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961,
                   against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench
                   dated 12.08.2008 in ITA No.370/mds/2008 relating to the Assessment Year
                   2000-01.


                               For Appellant      : Mr. Karthik Ranganathan
                                                    Senior Standing Counsel

                               For Respondent     : Mr. M.P. Senthil Kumar

                                                JUDGMENT

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(Judgment was delivered by T.S. SIVAGNANAM, J.) We have heard Mr.Karthik Ranganathan, learned Senior Standing

Counsel for the appellant/Revenue and Mr.M.P.Senthil Kumar, learned

counsel for the respondent/assessee.

2.The appeal, filed by the Revenue under Section 260A of the Income

Tax Act, 1961 (“the Act” for brevity) is directed against the order of the

Income Tax Appellate Tribunal, Madras 'B' Bench dated 12.08.2008 in ITA

No.370/mds/2008 relating to the Assessment Year 2000-01.

3.The appeal was admitted on 04.03.2009 on the following substantial

question of law:

“1)Whether on the facts and circumstances of the case, the Tribunal was right in quashing the order of the CIT passed under Section 263 by invoking the clause (c) to explanation on the presumption that the issue regarding the allowability of deduction under section 80I to the assessee in respect of the new unit of plant II for the eleventh assessment year 2000-01 was before CIT(A) for consideration?"

4.The learned Senior Standing Counsel for the appellant submits that

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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 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 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.

                                                                      (T.S.S., J.)     (S.S.K., J.)
                                                                               01.09.2021

                   Index : Yes / No
                   Internet : Yes /No
                   Sgl/mka
                                                                 T.S. SIVAGNANAM, J.
                                                                                and
                                                    SATHI KUMAR SUKUMARA KURUP, J.

                   Page 3/4
http://www.judis.nic.in
                                                             T.C.A.No.39 of 2009



                                                                     Sgl/mka

                   To

The Income Tax Appellate Tribunal, Madras, “B” Bench.

T.C.A.No.39 of 2009

01.09.2021

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