PRINCIPAL COMMISSIONER OF vs. SNJ DISTILLERS PVT LTD

TCA/275/2017HC Madras01 June 2020Bench: Hon`ble Mr Justice R. SURESH KUMAR4 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeals filed by the Revenue were to be dismissed as withdrawn. This decision was based on the submission made by the learned Counsel for the Revenue regarding the CBDT Circular No. 17/2019. The circular stipulates a monetary limit of Rs. 1,00,00,000/- for filing or pursuing appeals before the High Court. As the tax effect in the present case was stated to be less than this limit, the Revenue indicated that the appeals should not be pursued. Consequently, the High Court dismissed the appeals as withdrawn, without any costs. The operative direction was the dismissal of the appeals. No issue was expressly left undecided.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, filed four Tax Case Appeals (T.C.A. Nos. 275 to 278 of 2017) before the High Court of Judicature at Madras. These appeals challenged the orders of the Income Tax Appellate Tribunal, Chennai Bench, dated May 27, 2016, in ITA Nos. 300, 301, 302, and 303/Mds/2016. The respondent in these appeals was M/s. SNJ Distillers Pvt. Ltd. The appeals were filed under Section 260A of the Income Tax Act, 1961. The High Court was informed of a CBDT Circular No. 17/2019, dated August 8, 2019, which stipulated that appeals should not be filed or pursued by the Department before the High Court if the tax effect did not exceed Rs. 1,00,00,000/-.

What were the issues?

1. Whether the appeals filed by the Revenue are maintainable before the High Court in light of the CBDT Circular No. 17/2019 regarding the monetary limit for filing appeals? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeals were disposed of based on the Revenue's submission regarding the CBDT circular. Revenue's Contention: The Revenue brought to the notice of the High Court the CBDT Circular No. 17/2019, dated August 8, 2019. This circular mandates that appeals shall not be filed or pursued by the Department before the High Court in cases where the tax effect does not exceed Rs. 1,00,00,000/-. The Revenue submitted that the tax effect in the instant case was less than this stipulated monetary limit.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Judgt. dt.01.06.2020 in T.C.A. Nos.275 to 278 of 2017 Prl. Commr. vs. SNJ Distillers P Ltd. 1/4 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01.06.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARI AND THE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) Nos.275 to 278 of 2017 Principal Commissioner of Income Tax, Central 2, No.108, Mahathma Gandhi Road, Chennai 600 034 ... Appellant vs. M/s.SNJ Distillers Pvt. Ltd., New No.99, Canal Bank Road, CIT Nagar, Nandhanam, Chennai 600 035 ... Respondent Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai “C” Bench, dated 27.05.2016 in ITA Nos.300, 301, 302, 303/Mds/2016. For Appellant : Mr.T.R.Senthil Kumar Ms.K.G.Usha Rani Junior Standing Counsel http://www.judis.nic.in Judgt. dt.01.06.2020 in T.C.A. Nos.275 to 278 of 2017 Prl. Commr. vs. SNJ Distillers P Ltd. 2/4 For respondent : Mr.Ashok Pathy, for M/s.Rani Associates JUDGMENT (Delivered by DR.VINEET KOTHARI, J.) These Tax Case Appeals have been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, “C” Bench, dated 27.05.2016 in ITA Nos.300, 301, 302, 303/Mds/2016. 2. When the matter is taken up for hearing, Mr.T.R.Senthil Kumar, learned Counsel for the Revenue brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is stipulated that appeals 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). http://www.judis.nic.in Judgt. dt.01.06.2020 in T.C.A. Nos.275 to 278 of 2017 Prl. Commr. vs. SNJ Distillers P Ltd. 3/4 3. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeals filed by the Revenue are dismissed, as withdrawn. No costs. Consequently, connected miscellaneous petitions in CMP Nos.8418, 8419 and 8420 of 2017 are also dismissed. (V.K.,J.) (R.S.K.,J.) 01.06.2020 Index : Yes/No tar To 1. Income Tax Appellate Tribunal, 'C' Bench, Chennai. http://www.judis.nic.in Judgt. dt.01.06.2020 in T.C.A. Nos.275 to 278 of 2017 Prl. Commr. vs. SNJ Distillers P Ltd. 4/4 DR.VINEET KOTHARI, J. and

R.SURESH KUMAR, J. (tar) T.C.A.Nos.275 to 278 of 2017 01.06.2020 http://www.judis.nic.in

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