The Commissioner Of Income Tax vs M/S.Well Knit Industries
2022 Latest Caselaw 582 Mad

                                                                                T.C.A.No.1309 of 2009

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED : 10.01.2022

                                                       CORAM :

                                   THE HON'BLE MR. JUSTICE R. MAHADEVAN
                                                        AND
                              THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ

                                                 T.C.A.No.1309 of 2009

                  The Commissioner of Income Tax,
                  Coimbatore.                                                ... Appellant
                                                        Versus

                  M/s.Well Knit Industries,
                  S.F.No.314/5,
                  15, Valampalayam Main Road,
                  Anupparpalayam Post,
                  Tirupur.                                                           ...
                  Respondent

                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order of the Income Tax Appellate Tribunal, Chennai, “D” Bench,
                  dated 11.01.2008 in I.TA.No.1838/Mds/2006.


                  For Appellant              :       Mr.M.Swaminathan,
                                                     Senior Standing Counsel
                                                     Assisted by M/s.K.G.Usharani,
                                                     Junior Standing Counsel

                  For Respondent             :       No appearance

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                                                                                  T.C.A.No.1309 of 2009




                                                   JUDGMENT

(Judgment of the Court was delivered by R.MAHADEVAN, J.)

This tax case appeal has been filed by the appellant / Revenue,

challenging the order dated 11.01.2008 passed by the Income Tax Appellate

Tribunal, Bench 'D', Chennai, in I.T.A.No.1838/Mds/2006, relating to the

assessment year 2001-02.

2.By order dated 24.11.2009, this court admitted the aforesaid tax case

appeal on the following substantial question of law:

“Whether the Tribunal was right in holding that levying interest under Section 234B of the Income Tax Act, when the liability to pay advance tax arose only due to an amendment to Section 80HHC interested by Taxation have Amendment Act, 2005 retrospectively w.e.f. 1.4.1992?"

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3.When the matter was taken up for consideration, the learned counsel

for the appellant / Revenue brought to the notice of this court the Circular

No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes,

wherein, it is stipulated that appeal shall not be filed/pursued by the

Department before the High Court in cases where the tax effect does not

exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax

effect in this appeal is less than the threshold limit.

4.In the light of the aforesaid submissions made by the learned counsel

for the appellant / Revenue, the present appeal, wherein, the tax effect is said

to be less than the monetary limit imposed, is dismissed as withdrawn,

keeping open the substantial question of law for determination in an

appropriate case. No costs.

                                                                    (R.M.D., J.)     (M.S.Q., J.)
                                                                              10.01.2022
                  av


                  Internet : Yes
                  Index : Yes / No


                                                                            R. MAHADEVAN, J.

                  Page 3/4

https://www.mhc.tn.gov.in/judis T.C.A.No.1309 of 2009

and MOHAMMED SHAFFIQ, J.

av

To

1. The Income Tax Appellate Tribunal, Chennai “D” Bench.

2. The Commissioner of Income Tax, Coimbatore.

T.C.A.No.1309 of 2009

10.01.2022

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