Commissioner Of Income Tax-Ii v. M/S Talco Trichy Tannery

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 9.1.2019

CORAM

THE HON'BLE DR.JUSTICE VINEET KOTHARI AND THE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.1474 of 2010 Commissioner of Income Tax II Tiruchirapalli.

Appellant Vs.

M/s.Talco Trichy Tannery Effluent Co (TALCO) Tanners Mansion, No.257, Pudukottai Road, Sambattu, Tiruchirapalli 620 007.

Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated 19.3.2010 made in ITA No.1675/Mds/2009 and against the order of the Commissioner of Income Tax (Appeals)- III, Chennai - 34, dated 08/07/2009 and made in ITA Nos.745,750 & 753 to 756/08-09/A-III, Chennai -34, against the order of the Income Tax Officer, Company Ward, Chennai - 34 dated 21.03.2005 for the Assessment Year 1997-1998. For Appellant : Mr.M.Swaminathan Senior Standing Counsel For respondent : Dr.A.Thyagarajan, Senior Counsel for Mr.S.Rameshkumar

J U D G M E N T

(Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'D' Bench, Chennai, dated 19.3.2010 made in ITA No.1675/Mds/2009, by raising the following substantial question of law:

"Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right https://hcservices.ecourts.gov.in/hcservices/

in holding that the interest on fixed deposits and mobilization advances was not assessable on the ground that those were adjusted against the construction cost, contrary to the ratio of the Supreme Court's decision in the case of Tuticorin Alkalie Chemicals and Fertilizer Ltd. v. C.I.T. (227 ITR 173)?"

2. When the matter is taken up for admission, the learned Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.3/2018 dated 11.7.2018 wherein it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.50 lakhs.

3. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue is dismissed as not pressed, keeping open the substantial question of law for determination in an appropriate case.

ssk.

Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar To

1. The Commissioner of Income Tax II Tiruchirapalli.

2. The Deputy Commissioner of Income Tax, Circle IV, No.44, Williams Road, Cantonment, Trichy 620 001.

3. The Commissioner of Income Tax (Appeals)-II, No.121, Mahtma Gandhi Road, Chennai - 34.

4. The Income Tax Officer, Company Ward - III, Chennai -34.

5. The Registrar, Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai.

TCA No.1474 of 2010 kak(11/03/2019) https://hcservices.ecourts.gov.in/hcservices/