COMMISSIONER OF INCOME TAX vs. M/S. NKCM SPINNERS PVT LTD

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TCA/1123/2015HC Madras01 July 2025Bench: Honourable The CHIEF JUSTICE4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the counsel for the Revenue stated that the monetary limit involved in the appeal was below the monetary limit prescribed in Circular No.09/2024, dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. Based on instructions, the counsel stated that he was withdrawing the appeal. The Court further noted that the withdrawal was only due to the monetary limit and without conceding the stand of the Department. Consequently, the appeal was dismissed as withdrawn. No order as to costs was made.

What were the facts?

The Commissioner of Income Tax, Coimbatore (the Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Chennai Bench, dated December 19, 2014, in ITA No.1259/Mds/2013. The appeal was against NKCM Spinners Pvt. Ltd. (the assessee). The High Court of Judicature at Madras heard the appeal. The counsel for the Revenue appeared, while there was no appearance for the respondent assessee. The appeal was filed against an order passed by the ITAT.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the monetary limit prescribed by Circular No.09/2024 dated 17.09.2024. (Question of law) The Revenue's contention was that the monetary limit involved in the appeal was below the prescribed limit in Circular No.09/2024, and therefore, they had instructions to withdraw the appeal. The withdrawal was stated to be solely due to the monetary limit and without conceding the Department's stand. No arguments were recorded for the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

TCA No.1123 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01.07.2025 CORAM : THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE SUNDER MOHAN TCA No.1123 of 2015 The Commissioner of Income Tax, No.63, Race Course Road, Coimbatore. Appellant Vs NKCM Spinners Pvt. Ltd, No.18, Alagiri Singh Street, Fort, Erode-638 001. Respondent Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal “C” Bench, Chennai, dated 19.12.2014 in ITA No.1259/Mds/2013. For Appellant: Mr.Karthik Ranganathan Senior Standing Counsel For Respondent: No appearance __________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/07/2025 12:21:23 pm ) TCA No.1123 of 2015 JUDGMENT (Delivered by the Hon'ble Chief Justice) Mr.Karthik Ranganathan states that the monetary limit involved in this appeal is below the monetary limit prescribed in Circular No.09/2024, dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India. Counsel says that he has instructions, therefore, to withdraw the appeal. 2. Counsel also states that the withdrawal is only due to the monetary limit and without conceding the stand of the Department. Appeal stands dismissed as withdrawn. There shall be no order as to costs. (K.R.SHRIRAM, CJ.) (SUNDER MOHAN, J.)

01.07.2025 Index : Yes/No Neutral Citation : Yes/No sasi __________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/07/2025 12:21:23 pm ) TCA No.1123 of 2015 To: 1. The Assistant Registrar Income Tax Appellate Tribunal Chennai Benches, Chennai. 2. The Commissioner of Income Tax (Appeals)-1, Coimbatore. 3. The Assistant Commissioner of Income-Tax Circle-1 Erode. __________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/07/2025 12:21:23 pm ) TCA No.1123 of 2015 THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN,J. (sasi)

TCA No.1123 of 2015

01.07.2025 __________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 03/07/2025 12:21:23 pm )

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