THE COMMISSIONER ON INCOME T vs. M/S. ENNORE PORT LIMITED

T.C.A.Nos.154 & 155 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 08.07.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE R.HEMALATHA T.C.A.Nos.154 & 155 of 2016 The Commissioner of Income Tax, Chennai.

... Appellant in both TCAs vs. M/s.Ennore Port Limited, 23, Rajaji Salai Chennai – 600 001. .. Respondent in both TCAs Appeals preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, "B" Bench, dated 29.11.2011 in ITA.Nos.1681 & 1682/Mds/2010 for the Assessment Years 2002-2003 & 2003-2004. For Appellant : Mr. Karthik Ranganathan,

in both TCAs Senior Standing Counsel For Respondent : Mr. N.V.Balaji

in both TCAs Page 1/5 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.154 & 155 of 2016 COMMON JUDGMENT (Common Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr. Karthik Ranganathan, learned Senior Standing Counsel for the appellant/Revenue and N.V.Balaji, learned counsel for the respondent. 2. The appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) are directed against the orders dated 29.11.2011 made in ITA.Nos.1681 & 1682/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai, "B" Bench (for brevity, the Tribunal) for the Assessment Years 2002-2003 & 2003-2004. 3. The appeals were admitted on the following substantial questions of law:- “Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the depreciation on account of expenses incurred in connection with Page 2/5 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.154 & 155 of 2016 setting up of break water in the port was allowable even though the same was not forming part of the block of assets in the schedule, which allows depreciation? And (ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the depreciation on port creation charges is to be treated as plant and machinery and allowed the claim of the assessee at 25% or 10% as applicable to buildings?” 4. The learned Senior Standing Counsel appearing for the appellant submits that the above appeals are 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 these cases are less than the threshold limit. Page 3/5 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.154 & 155 of 2016 5. In the light of the said submissions, the above Tax Case Appeals are 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 these cases 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 appeals to be heard and decided on merits. No costs. [M.D., J.] [R.H., J.] Index : Yes/No 08.07.2021 Internet : Yes gv Page 4/5 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.154 & 155 of 2016 M. DURAISWAMY, J. and R.HEMALATHA,J gv To The Income Tax Appellate Tribunal, Chennai,"B" Bench T.C.A.Nos.154 & 155 of 2016 08.07.2021

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