Commissioner Of Income Tax v. M/S.Sunrise Knitting Mills

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram :

The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.141 of 2015 Commissioner of Income Tax, Tirupur Range, Tirupur.

...Appellant/Respondent Vs M/s.Sunrise Knitting Mills, 117, Kulivayal Thottam, Kullengoundenpudur, Tirupur - 641 607.

PAN: AALFS4137P

...Respondent/Appellant

APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 22.08.2014 made in ITA.No.632/MDS/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2010-2011, preferred against the Order dated 24/12/2013 made in I.T.Appeal No.87/12-13, on the file of Commissioner of Income Tax Appeals-II, Coimbatore against the Assessment order dated 19/11/2012 made in PAN:AALFS4137P on the file of Assistant Commissioner of Income Tax, Circle-I, Tiruppur. For Appellant : Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani For Respondent : Mr.R.Kumar

JUDGMENT

(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel, assisted by Ms.K.G.Usharani, learned counsel appearing for the appellant/revenue and Mr.R.Kumar, learned counsel appearing for the respondent/assessee.

2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 22.08.2014 made in ITA.No.632/MDS/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2010-2011.

https://hcservices.ecourts.gov.in/hcservices/

3.The appeal was admitted on 07.04.2015 on the following substantial question of law :

"Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the proceeds realised by the assessee on sale of Certified Emission Reduction Credit, which the assessee had earned on the Clean Development Mechanism in its wind energy operations, is a capital receipt and not taxable?"

4.The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 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 question of law framed is 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 make a mention to this Court to restore the appeal to be heard and decided on merits. No costs.

Sd/- Assistant Registrar //True Copy// cse Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai B Bench. 2.The Commissioner of Income Tax Appeals-II, Coimbatore 3.The Assistant Commissioner of Income Tax, Circle-I, Tiruppur. +1 cc to M/s.T.R.Senthil Kumar, Advocate, S.R.No.73612 +1 cc to M/s.J.N.Seetha Raman, Advocate, S.R.No.74494 TCA.No.141 of 2015 VG-I(CO) SSM(16/10/2019) https://hcservices.ecourts.gov.in/hcservices/