Madras High CourtTCA/939/2009withdrawn dismissed

The Commissioner Of Income v. M/S Super Spinning Mills Ltd

2018-11-26Honourable Dr Justice Vineet Kothari,Honourable Dr Justice Anita Sumanth4 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 26.11.2018

CORAM:

THE HON'BLE DR. JUSTICE VINEET KOTHARI and THE HON'BLE DR. JUSTICE ANITA SUMANTH T.C.(A).No.939 of 2009 Commissioner of Income Tax-I, Coimbatore.

.. Appellant Vs M/s. Super Spinning Mills Limited, Elgi Towers, 737D, Green Fields, Puliakulam Road, Coimbatore-641 045.

PAN AADCS0672G .. Respondent Prayer : Tax Case (Appeal) is filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Chennai 'B' Bench, dated 02.04.2009 passed in ITA No.1616/Mds/2008.

For Appellant : Mr.T.R.Senthilkumar For Respondent : Mr.A.S.Sriraman for Mr.S.Sridhar

JUDGMENT

(Judgment of the Court was delivered by DR.VINEET KOTHARI, J.) Heard the learned Counsel for the appellant.

2. The Revenue preferred this appeal challenging the order passed by the Income Tax Appellate Tribunal in ITA No.1616/Mds/2008, dated 02.04.2009.

3. The above appeal has been admitted on 19.10.2009 on the following substantial question of law :

"i. Whether on the facts and circumstances of the case the appellate Tribunal was right in law in holding that the interest under Section 234-D cannot be levied for the period prior to 1.6.2003 is valid?''

4. It may not be necessary for us to answer the above substantial question of law, as the monetary limit in this appeal is lesser than the amount fixed by the circular instructions issued by the Central Board of Direct Taxes in Circular No.3/2018 dated 11.07.2018. The said circular covers the issue regarding chargeability of interest also. In paragraph 4 of the said Circular, it has been stated that in case the chargeability of interest is the issue under dispute, the

amount interested shall be the tax effect. Since the quantum of interest charged under Section 234-D of the Income Tax Act in the present case is being Rs.7,25,340/- which is less than Rs.50,00,000/- as stated in Circular No.3/2018 dated 11.07.2018, the Writ Appeal is liable to be dismissed.

5. Accordingly, the present appeal is dismissed. No costs. The substantial question of law is left open for consideration in an appropriate case.

(V.K.J.,) (A.S.M.,J) 26.11.2018 Index:yes/no tsi To Commissioner of Income Tax-I, Coimbatore.

DR.VINEET KOTHARI, J.

AND DR.ANITA SUMANTH, J.

tsi T.C.(A).No.939 of 2009 26.11.2018