THE COMMISSIONER OF INCOME T vs. M/S. GITA WIND ENERGY

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TCA/776/2018HC Madras07 July 2020Bench: THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Tax Case Appeal filed by the Revenue. The dismissal was based on the submission made by the Revenue's counsel, who stated that the appeal was not being pursued due to the low tax effect, which was below the threshold limit prescribed by CBDT Circular No. 17/2019. This circular increased the monetary limit for filing appeals before the High Court to Rs. 1 Crore. The Court granted liberty to the Revenue to seek restoration of the appeal if the tax effect was found to be above the threshold limit, allowing it to be heard and decided on merits. No decision was made on the substantive merits of the appeal.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax, Chennai, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 30.11.2017 passed by the Income Tax Appellate Tribunal (ITAT), Madras “D” Bench. The appeal pertains to the assessment year 2011-12 and concerns M/s. Gita Wind Energy. The Revenue's counsel informed the High Court that the appeal was not being pursued due to a low tax effect, citing CBDT Circular No. 17/2019 which increased the monetary limit for filing appeals before the High Court to Rs. 1 Crore. The tax effect in this case was stated to be below this threshold.

What were the issues?

1. Whether the appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, in light of CBDT Circular No. 17/2019? The Revenue argued that the appeal should be dismissed as the tax effect is below the revised monetary limit stipulated in CBDT Circular No. 17/2019, which increased the threshold for filing appeals before the High Court to Rs. 1 Crore. The Revenue's counsel explicitly stated that the appeal was not being pursued on this basis. The Respondent (assessee) did not present any arguments as the appeal was being dismissed on the Revenue's submission regarding low tax effect.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.776 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.776 of 2018 The Commissioner of Income Tax, Chennai.

... Appellant Vs. M/s.Gita Wind Energy 4/7, Thiru Vi Ka Road Mylapore, Chennai - 600 004. PAN : AAJFG7091A

... Respondent Tax Case Appeal is filed under Section 260A of the Income Tax Act 1961 against the order dated 30.11.2017 made in I.T.A.No.750/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras “D” Bench, Chennai, for the assessment year 2011 - 12.

For Appellant : Mrs.R.Hemalatha Senior Standing Counsel

For Respondent : Mr.A.S.Sriraman For Mr.S.Sridhar Judgment

(Judgment was delivered by T.S.SIVAGNANAM.J) We have heard Mrs.R.Hemalatha, learned Senior Standing Counsel for the appellant and Mr.A.S.Sriraman, learned counsel for the respondent. 1/4 http://www.judis.nic.in T.C.A.No.776 of 2018 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 30.11.2017 made in I.T.A.No.750/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras “D” Bench, Chennai, for the assessment year 2011 - 12. 3. 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. 4. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. 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 2/4 http://www.judis.nic.in T.C.A.No.776 of 2018 Index : yes/no Internet : yes/no Speaking Order/Non-Speaking Order To The Income Tax Appellate Tribunal, “D” Bench, Chennai. 3/4 http://www.judis.nic.in T.C.A.No.776 of 2018 T.S.SIVAGNANAM.J., and V.BHAVANI SUBBAROYAN.J., raja Tax Case Appeal No.776 of 2018 07.07.2020 4/4 http://www.judis.nic.in

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