THE COMMISSIONER OF INCOME T vs. M/S.SAKURA ELECTRONICS PVT.L

TCA/745/2019HC Madras18 October 2019Bench: Hon`ble The ACTING CHIEF JUSTICE3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court noted that the Revenue had brought to its attention CBDT Circular No.17/2019 dated 8th August 2019. This circular stipulates 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 Court was informed that in the instant case, the tax effect was less than this monetary limit. Consequently, the High Court dismissed the appeal filed by the Revenue as withdrawn. The Court explicitly stated that the substantial questions of law were kept open for determination in appropriate cases. No costs were awarded.

What were the facts?

The Revenue, the Commissioner of Income Tax, Tamil Nadu IV, Madras, filed a Tax Case Appeal under Section 260A of the Income Tax Act. The appeal challenged an order passed by the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai, dated 15.10.1992, in R.A.No.842 of 1992, pertaining to Assessment Year 1984-85. The assessee is M/s. Sakura Electronics Pvt. Ltd. The appeal was filed against the Tribunal's decision regarding the assessee's method of accounting. The High Court was informed of a CBDT Circular No.17/2019 dated 8th August 2019, which mandates that appeals shall not be filed or pursued by the Department before the High Court if the tax effect does not exceed Rs.1,00,00,000/-.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the method of accounting followed by the assessee could not be faulted? (Question of law) Assessee's Contentions: Not recorded. Revenue's Contentions: The Revenue argued that the Tribunal erred in law by upholding the assessee's method of accounting. The Revenue relied on the substantial question of law as framed in the appeal. The Revenue also brought to the notice of the Court the CBDT Circular No.17/2019, which sets a monetary limit for filing appeals before the High Court. The Revenue stated that the tax effect in the present case was less than the stipulated limit of Rs.1,00,00,000/-.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Judgment dt. 18.10.2019 in TC(A) No.745 of 2019 CIT v. Sakura Electronics Pvt Ltd IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 18.10.2019 CORAM : THE HON'BLE DR.VINEET KOTHARI, ACTING CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case (Appeal) No.745 of 2019 The Commissioner of Income Tax Tamil Nadu IV, Madras .. Appellant -vs- M/s.Sakura Electronics Pvt. Ltd Madras .. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai dated 15.10.1992 passed in R.A.No.842 of 1992. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel Assisted by M/s.K.G.Usharani Junior Standing Counsel J U D G M E N T (Delivered by The Hon'ble Acting Chief Justice) This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 15.10.1992, in R.A.No.842 of 1992, for the Assessment Year 1984-85 by raising the following substantial question of law. __________ Page 1 of 3 http://www.judis.nic.in Judgment dt. 18.10.2019 in TC(A) No.745 of 2019 CIT v. Sakura Electronics Pvt Ltd "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the method of accounting followed by the assessee could not be faulted?” 2. When the matter is taken up for hearing, learned Senior Standing Counsel 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). 3. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed, as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs.

(V.K.,ACJ.) (C.S.N.,J.) 18.10.2019 Index : Yes/No kst To: Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai __________ Page 2 of 3 http://www.judis.nic.in Judgment dt. 18.10.2019 in TC(A) No.745 of 2019 CIT v. Sakura Electronics Pvt Ltd The Hon'ble Acting Chief Justice and C.Saravanan, J. KST T.C.(A) No.745 of 2019 18.10.2019 __________ Page 3 of 3 http://www.judis.nic.in

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