THE COMMISSIONER OF INCOME T vs. SM FEEDS & FARMS INDIA

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TCA/540/2018HC Madras02 June 2020Bench: Hon`ble Mr Justice M. SATHYANARAYANAN5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that in light of the submission made by the learned standing counsel for the Revenue, and in accordance with Circular No. 17 of 2019 dated 08.08.2019, which enhances the monetary limits for filing appeals by the Department before High Courts to Rs. 1,00,00,000/-, the present Tax Case Appeals deserve dismissal. The Court noted that the tax effect in these appeals was less than the revised monetary limit. Consequently, the appeals were dismissed. However, the Court explicitly stated that the question of law is left open and is to be decided in an appropriate proceeding. No costs were awarded.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (Revenue) against the order of the Income Tax Appellate Tribunal (ITAT), Madras 'B' Bench, dated 25.11.2016. The ITAT's order pertained to Assessment Years 2012-13 and 2013-14 for the assessee M/s. SM Feeds & Farms India Pvt. Ltd. The appeals were filed under Section 260-A of the Income Tax Act, 1961. The Revenue's counsel submitted that the tax effect under the impugned orders was less than Rs. 1,00,00,000/- and therefore, Circular No. 17 of 2019 issued by the CBDT should apply. The Revenue requested that the appeals be dismissed, leaving the substantial questions of law open for future consideration. There was no representation from the assessee.

What were the issues?

1. Whether the appeals filed by the Revenue should be dismissed in light of CBDT Circular No. 17 of 2019, given that the tax effect is below the revised monetary limit for filing appeals before the High Court. Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The learned standing counsel for the Revenue fairly submitted that since the tax effect under the impugned orders is less than Rs. 1,00,00,000/-, Circular No. 17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes shall apply, and the appeal may be dismissed, leaving the substantial questions of law raised in these appeals open for consideration in the near future.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.540 & 541 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.06.2020 CORAM THE HONOURABLE MR.JUSTICE M.SATHYANARAYANAN and THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE T.C.A.Nos.540 & 541 of 2018 The Commissioner of Income Tax

.. Appellant in both T.C.A.s Versus M/s.SM Feeds & Farms India Pvt. Ltd., ''Lucky Building'', No.938, 12th Cross Street, MKB Nagar Vyasarpadi, Chennai 600 039.

.. Respondent in both T.C.A.s Common Prayer:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, dated 25.11.2016 made in I.T.A.Nos.2796, 2797 & 2798/Mds/2016 relating to the Asst Years: 2012-13 & 2013-14. 1/5 http://www.judis.nic.in T.C.A.Nos.540 & 541 of 2018 For Appellant in both T.C.A.s : Mr.J.Narayanasamy COMMON JUDGMENT [Order of the Court was made by ABDUL QUDDHOSE, J.] Heard Mr.J.Narayanasamy, learned standing counsel for the Appellant/Revenue. There is no representation on the side of the sole respondent/assessee. 2.The learned standing counsel for the revenue fairly submitted that since the tax effect under the impugned orders is less than Rs.1,00,00,000/-, the circular No.17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes shall apply and the appeal may be dismissed leaving the substantial questions of law raised in these appeals open for consideration in the near future. Circular No.17 of 2019 dated 08.08.2019 reads as follows: “Circular No.3/2018 dated 11th July 2018 has been replaced by Circular No.17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal High 2/5 http://www.judis.nic.in T.C.A.Nos.540 & 541 of 2018 Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLP s in Income- tax matters Monetary Limit (Rs.) (Previous Limits) Monetary Limit (Rs.) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000 • The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • Further, even in the case of composite order of High 3/5 http://www.judis.nic.in T.C.A.Nos.540 & 541 of 2018 Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately. 3. In the light of the above referred circular, these Tax Case Appeals deserve dismissal and accordingly, dismissed. However, the question of law is left open and it is to be decided in an appropriate proceeding. No costs. (M.S.N.,J) (A.Q.,J) 02.06.2020 AP/sk Index: Yes / No Internet: Yes / No Speaking Order/Non-Speaking Order M.SATHYANARAYANAN, J. 4/5 http://www.judis.nic.in T.C.A.Nos.540 & 541 of 2018 AND ABDUL QUDDHOSE, J. AP T.C.A.Nos.540 & 541 of 2018 02.06.2020 5/5 http://www.judis.nic.in

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