COMMISSIONER OF INCOME TAX vs. M/S. PRECOT MERIDIAN LTD

T.C.A.No.153 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.153 of 2016 The Commissioner of Income Tax, No.63, Race Course Road, Coimbatore. ... Appellant

Versus M/s. Precot Meridian Ltd., 'Suprem' P.B.No.7161, Green Fields, Puliakulam, Coimbatore - 641 045. PAN: AAB CP 3038 K ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 15.05.2015 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.1864/Mds/2014. For Appellant : Mr.M.Swaminathan Senior Standing Counsel Mrs.V.Pushpa, Standing Counsel For Respondent : Mr.S.Sridhar Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.153 of 2016 JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 15.05.2015 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.1864/Mds/2014, relating to the assessment year 1997-98. 2.By order dated 09.03.2016, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and circumstances of the case, the Appellate Tribunal was correct in holding that the period specified under Section 220(1) has to be taken into consideration from the date of passing of the fresh assessment order and not the original assessment order? and (ii) Whether on the facts and circumstances of the case, the Appellate Tribunal is correct in not considering the CBDT's circular No.334 wherein it was stated that the assessment made originally by the Income Tax Officer is either varied or even set aside by one Appellate Authority, but on further appeal, the original order of the Income Tax officer is restored either in part or wholly, the interest payable under Section 220(2) will be computed with reference to the due date reckoned from the original demand notice and with reference to the tax finally determined?" Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.153 of 2016 3. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeal shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 29.08.2022

Internet : Yes

Index : Yes / No av Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.153 of 2016 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai. 2. The Commissioner of Income Tax, No.63, Race Course Road, Coimbatore. 3. The Assistant Commissioner of Income Tax, Company Circle-I(2), Coimbatore. 4. The Commissioner of Income Tax (Appeals) - 1, Coimbatore. T.C.A.No.153 of 2016 29.08.2022 (2/2) Page 4/4 https://www.mhc.tn.gov.in/judis