COMMISSIONER OF INCOME TAX vs. M/S. SATTVA CFS AND LOGISTIC

T.C.A.No.820 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.820 of 2019 Commissioner of Income Tax, Chennai.

... Appellant Vs M/s.Sattva CFS and Logistics Pvt.,Ltd., No.153, High Gate Level 4, Santhome High Road R.A.Purum Chennai 600 028.

...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against the order dated 01.01.2016 in ITA No.701/Mds/2015 on the file of the Income Tax Appellate Tribunal Madras 'B' Bench for the assessment year 2010-2011. For Appellant : Mr.J.Narayanasamy, Senior Standing Counsel.

1/6 http://www.judis.nic.in T.C.A.No.820 of 2019 J U D G M E N T (Order of the Court was delivered by N.KIRUBAKARAN, J)

This Tax Case Appeal has been filed against the order passed by the Income Tax Appellate Tribunal dated 01.01.2016 reversing the order of the Commissioner of Income Tax who in fact reversed the order of the assessing officer regarding deduction under Section 80-IA of the Act. 2.In view of the fact that similar matter is pending before the Hon'ble Supreme Court and because of the favourable order passed in favour of the Department in the case reported in “217 ITR 358 (MAD)”, this appeal is admitted on the following substantial questions of law; “(i)The Tribunal erred in holding that CIT has no jurisdiction under Section 263 to revise the order of the assessment on the ground of pendency of the Special Leave Petition before the Apex Court against the decision of AL Logistics Ltd. (ii)The Tribunal ought to have appreciated that the decision reported in 217 ITR 358 (MAD) has held that revision proceedings can be initiated to keep the 2/6 http://www.judis.nic.in T.C.A.No.820 of 2019 issue alive during the pendency of SLP before the Apex Court.” 3.Heard Mr.J.Narayanasamy, learned Senior Standing Counsel for the appellant. He would submit that the tax effect in this case is less than Rs.1 crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 crore. In this case, tax effect is less than Rs.1 crore and therefore, the case has to be dismissed. 4.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the Circular, which prescribes monetary limit for filing appeal. Paragraph No.2 is usefully extracted as follows: "2.As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for 3/6 http://www.judis.nic.in T.C.A.No.820 of 2019 monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals / SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000" 5.In view of the submissions made by the learned counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, the Tax Case Appeal is dismissed on account of tax effect. However, the substantial questions of law framed are left open. In the event the tax effect is above the 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. No costs. (N.K.K.,J.) (P.V.,J.) 13.11.2019 ay 4/6 http://www.judis.nic.in T.C.A.No.820 of 2019 To Commissioner of Income Tax, Chennai.

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T.C.A.No.820 of 2019 Dated:13.11.2019 6/6 http://www.judis.nic.in