COMMISSIONER OF INCOME TAX vs. M/S.MAGNA ELECTRO CASTINGS L

TCA.No.718 of 2016 In the High Court of Judicature at Madras Dated : 30.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.718 of 2016 The Commissioner of Income Tax, Coimbatore ...Appellant Vs M/s.Magna Electro Castings Ltd., Coimbatore-18. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 16.10.2014 made in ITA.No.186/Mds/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2009-10. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC Respondent : served and no appearance Judgment was delivered by

T.S.Sivagnanam,J

We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel assisted by Ms.K.G.Usharani, learned Standing Counsel appearing for the appellant – Revenue. 1/4 http://www.judis.nic.in TCA.No.718 of 2016 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 16.10.2014 made in ITA. No.186/Mds/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2009-10. 3. The appeal was admitted on 22.11.2016 on the following substantial question of law : “Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the notional loss on foreign currency loans raised for purchase of assets arising as a result of change in the rate of foreign exchange as on the balance sheet date, is allowable as a revenue expenditure ?” 4. The learned Senior Standing 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. 2/4 http://www.judis.nic.in TCA.No.718 of 2016 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law framed is 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.

30.8.2019 Internet: Yes To The Income Tax Appellate Tribunal, Chennai 'D' Bench. RS 3/4 http://www.judis.nic.in TCA.No.718 of 2016 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.718 of 2016 30.8.2019 4/4 http://www.judis.nic.in