Commissioner Of Income Tax v. M/S. Sdalona Costpin
In the High Court of Judicature at Madras Dated : 18.06.2020 Coram :
The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.697 of 2015 Commissioner of Income-tax, Coimbatore.
...Appellant -vsM/s.Salona Cotspin Limited, No.9, Ramalinga Nagar, 4th Cross Saibaba Colony, Coimbatore-641 021.
PAN: AACCS4554N
...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 11.06.2013 made in I.T.A.No.426/Mds/2013 on the file of the Income Tax Appellate Tribunal 'A' Bench, Chennai for the assessment year 2009-10, appeal filed against the order of the commissioner of Income Tax Appeals in Appeal No.265/11-12 for the Assessment year 2009-10 on the file of the Commissioner of Income Tax(Appeals)II, Coimbatore against the order of the Additional Commissioner of Income Tax Range I, Coimbatore in PAN No.AACCS4554N for the Assessment year 2009-10. For Appellant: Mr.T.R.Senthil Kumar, Senior Standing Counsel & Ms.K.G.Usha Rani, Standing Counsel For Respondent: Mr.G.Baskar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel and Ms.K.G.Usha Rani, learned Standing Counsel for the appellant-Revenue and Mr.G.Baskar, learned counsel 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 https://hcservices.ecourts.gov.in/hcservices/
11.06.2013 made in I.T.A.No.426/Mds/2013 on the file of the Income Tax Appellate Tribunal 'A' Bench, Chennai for the assessment year 2009-10.
3. The appeal was admitted on 31.08.2015 on the following substantial question of law:- "Whether on the facts and circumstances of the case, the Tribunal was right in holding that the proceeds realized 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(CS VIII) //True Copy// Sub Assistant Registrar abr To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai.
2.The Commissioner of Income Tax(Appeal) I, Coimbatore.
3.The Additional Commisioner of Income Tax Range-I, Coimbatore.
TCA.No.697 of 2015 KS(CO) RMP(07/10/2020) https://hcservices.ecourts.gov.in/hcservices/