Madras High Court
Commissioner Of Income Tax vs M/S.Adisankara Spinning Mills Limited on 27 August, 2019
Author: T.S.Sivagnanam
Bench: T.S.Sivagnanam, V.Bhavani Subbaroyan
TCA.No.293 of 2015
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.293 of 2015
Commissioner of Income Tax,
Company Circle-I, Tirupur. ...Appellant
Vs
M/s.Adisankara Spinning Mills Limited,
207/86, Mangalam Road,
Karuvampalayam, Tirupur - 641 601.
PAN: AABCA5198B ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the order
dated 18.08.2014 made in ITA.No.631/MDS/2013 on the file of the Income Tax
Appellate Tribunal, Chennai 'A' Bench for the assessment year 2009-10.
For Appellant : Mr.T.R.Senthilkumar, SSC assisted by
Ms.K.G.Usharani
For Respondent : Mr.R.Sivaraman
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 1/4 http://www.judis.nic.in TCA.No.293 of 2015 appellant/revenue and Mr.R.Sivaraman, 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 18.08.2014 made in ITA.No.631/MDS/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench for the assessment year 2009-10.
3.The appeal was admitted on 16.06.2015 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 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 2/4 http://www.judis.nic.in TCA.No.293 of 2015 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.
(T.S.S.J.) (V.B.S.J.)
27.08.2019
cse
Speaking (or) Non Speaking Order
Index : Yes (or) No
To
1.M/s.Adisankara Spinning Mills Limited, 207/86, Mangalam Road, Karuvampalayam, Tirupur - 641 601.
2.The Income Tax Appellate Tribunal, Chennai 'A' Bench.
3/4http://www.judis.nic.in TCA.No.293 of 2015 T.S.SIVAGNANAM,J.
AND V.BHAVANI SUBBAROYAN,J.
cse TCA.No.293 of 2015 27.08.2019 4/4 http://www.judis.nic.in