Commissioner Of Income Tax v. M/S Matha Spinning Mills P Ltd

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.319 of 2014 Commissioner of Income Tax, Coimbatore.

...Appellant -vsM/s.Matha Spinning Mills (P) Ltd., 207/86, Mangalam Road, Tirupur-641 601.

...Respondent

APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 30.08.2013 made in I.T.A.No.617/Mds/2013 on the file of the Income Tax Appellate Tribunal 'D' Bench, Chennai for the assessment year 2009-10 as against the order of the Commissioner of Income Tax (Appeals)-II, Coimbatore made in IT Appeal No.50/11-12 dated 30/01/2013 as against the order of the Deputy Commissioner of Income Tax, Company Circle, Tirupur PAN/GIR.No.AAECS1881Q dated 09/03/2011 for the Assessment year 2009-2010.

For Appellant :

Mr.T.R.Senthil Kumar, Senior Standing Counsel & Ms.K.G.Usha Rani, Standing Counsel For Respondent:

Mr.R.Sivaraman 1/3

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 appearing for the appellant-Revenue and Mr.R.Sivaraman, 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 30.08.2013, made in I.T.A.No.617/Mds/2013 on the file of the Income Tax Appellate Tribunal 'D' Bench, Chennai for the assessment year 2009-10.

3. The appeal was admitted on 21.07.2014, on the following substantial question of law:- "Whether 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.

-s/d- Assistant Registrar True Copy Sub-Assistant Registrar abr 2/3

To 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)-II Coimbatore 3.The Deputy Commissioner of Income Tax, Company Circle Tirupur.

TCA.No.319 of 2014 spd(co) aa29/09/2020 3/3