PRINCIPAL COMMISSIONER vs. M/S. G.V.G. PAPER MILLS PVT

T.C.A.No.859 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.859 of 2017 Principal Commissioner of Income Tax Central II, No.108, Nungambakkam High Road, Chennai. ... Appellant

Versus M/s. G.V.G.Paper Mills Pvt. Ltd., 168/2, Sikkandar Batcha Street, Gandhi Nagar, Udumalpet - 642 154. PAN: AAB CG 1438 N ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 10.08.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.1452/Mds/2016. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.859 of 2017 For Respondent : Mr.S.Sridhar JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 10.08.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.1452/Mds/2016, relating to the assessment year 2011-12, by raising the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that a new industrial undertaking, which is distinct, separate and independent of the old existing business of the assessee, has come into existence within the meaning of sub section (2) of Section 80IA of the Income Tax Act, overlooking their organic unitedness? (ii) Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the provisions of section 80IA(3)(i) are not applicable to the turbine unit? (iii) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law by deciding the issue Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.859 of 2017 by overriding the finding of the CIT(A) that the restrictive provisions under section 80IA(3)(ii) is also applicable to the facts of the assessee's case? 2. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeal 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). It is also submitted that the tax effect in this appeal is less than the threshold limit. 3.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 01.08.2022

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Index : Yes / No Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.859 of 2017 av R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. 2. The Principal Commissioner of Income Tax Central II, No.108, Nungambakkam High Road, Chennai. 3. The Deputy Commissioner of Income-tax, Central Circle - 3 (i/c), Coimbatore.