Madras High Court
The Commissioner Of Income Tax vs M/S.Ennore Port Ltd on 18 June, 2021
Author: M.Duraiswamy
Bench: M.Duraiswamy, R. Hemalatha
T.C.A.No.831 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.06.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.831 of 2013
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Ennore Port Ltd.
23, Rajaji Salai, Chennai. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 11.05.2012 in I.TA.No.237/Mds/2012, Assessment
Year 2004-05.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.N.V.Balaji
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https://www.mhc.tn.gov.in/judis/
T.C.A.No.831 of 2013
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned Senior Standing Counsel for the appellant/Revenue and Mr.N.V.Balaji, learned counsel for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 11.05.2012 made in I.TA.No.237/Mds/2012 on the file of the Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the Tribunal) for the Assessment Year 2004-05.
3.The appellant/Revenue has raised the following substantial questions of law in the above appeal :
“1.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the expenditure relating to prior period interest amounting to Rs.1,12,74,194/- is to be allowed u/s.37?
2.Whether on the facts and in the Page 2/5 https://www.mhc.tn.gov.in/judis/ T.C.A.No.831 of 2013 circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the depreciation on port creation expenses amounting to Rs.36.70 lakhs are to be allowed inspite of the fact the same was not classified in the Appendix-I of the depreciation table under Income Tax Rules?
3.Whether on the facts and circumstances of the case, the port creation charges can be termed as a building or plant and machinery for claiming depreciation?”
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 08.08.2019 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 Page 3/5 https://www.mhc.tn.gov.in/judis/ T.C.A.No.831 of 2013 is dismissed as withdrawn on account of the Low Tax Effect. The substantial questions of law framed are left open. In the event the tax effect in this case 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.
[M.D., J.] [R.H., J.]
18.06.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Chennai, “C” Bench
2.The Commissioner of Income Tax, Chennai.
Page 4/5https://www.mhc.tn.gov.in/judis/ T.C.A.No.831 of 2013 M.DURAISWAMY, J.
and R. HEMALATHA, J.
mkn T.C.A.No.831 of 2013 18.06.2021 Page 5/5 https://www.mhc.tn.gov.in/judis/