PRINCIPAL COMMISSIONER OF vs. M/S INDOWIND ENERGY LTD

T.C.A.No.558 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.07.2020 CORAM THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM & THE HON'BLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.558 of 2018 Principal Commissioner of Income Tax 2 No.121, Mahatma Gandhi Road, Chennai - 600 034.

... Appellant Vs. M/s.Indowind Energy Ltd, Kothari Buildings, IV floor, 114, Nungambakkam High Road, Chennai - 600 034. PAN : AAA CI 1806 M

... Respondent Tax Case Appeal is filed under Section 260A of the Income Tax Act 1961 against the order dated 25.10.2016 made in I.T.A.No.1824/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras “B” Bench, for the assessment year 2008 - 09

For Appellant : Mr.Karthik Ranganathan

For Respondent : Mr.A.S.Sriraman For Mr.S.Sridhar 1/4 http://www.judis.nic.in T.C.A.No.558 of 2018 Judgment

(Judgment was delivered by T.S.SIVAGNANAM.J) We have heard Mr.Karthik Ranganathan, learned counsel for the appellant and Mr.A.S.Sriraman, accepting notice for the respondent. 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 25.10.2016 made in I.T.A.No.1824/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras “B” Bench, for the assessment year 2008 - 09. 3. The Tax case appeal was admitted on 28.08.2018 on the following substantial questions of law : “(i) Whether in the facts and circumstances of the case and in law, the ITAT was correct in allowing the bad debt written off on account of advance made for the purchase of land to M/s.Wipro Finance Ltd. when the assessee is not into the business of real estate? and (ii) Whether the ITAT was correct in allowing higher claim of depreciation while calculating the book profit under Section 115JB of the Act, when the assessee had not disclosed by way of a note forming part of annual accounts as specified in Circular No.2/89/No.1/17-87-CI-V of the Ministry of Industry?” 2/4 http://www.judis.nic.in T.C.A.No.558 of 2018 4. The learned counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 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 this case is less than the threshold limit. 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect 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 appeal to be heard and decided on merits.

(T.S.S.J.,) (V.B.S.J.,)

07.07.2020 raja Index : yes/no Internet : yes/no Speaking Order/Non-Speaking Order To The Income Tax Appellate Tribunal, “B” Bench, Chennai. 3/4 http://www.judis.nic.in T.C.A.No.558 of 2018 T.S.SIVAGNANAM.J., and V.BHAVANI SUBBAROYAN.J., raja Tax Case Appeal No.558 of 2018 07.07.2020 4/4 http://www.judis.nic.in