THE COMMISSIONER OF INCOME vs. M/S. PRESIDENCY KIND LEATHER

TCA.No.865 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 865 of 2016 The Commissioner of Income Tax, Chennai

.. Appellant Versus M/s. Presidency Kind Leather Pvt. Ltd., Plot No.2165, L Block, 1st Street, Shanthi Colony, Anna Nagar, Chennai 600 040 PAN: AAACP 1952D

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras 'C' Bench, Chennai, dated 06.04.2016 passed in ITA No.2211/Mds/2015 in respect of Assessment Year 1999-2000. For Appellant : Mr. T. Ravikumar Standing Counsel For Respondent : Mr. S.Sridhar 1/4 https://www.mhc.tn.gov.in/judis TCA.No.865 of 2016

JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 06.04.2016 passed by the Income Tax Appellate Tribunal Madras 'C' Bench, Chennai in ITA No.2211/Mds/2015 for the Assessment Year 1999-2000. 2. On 20.12.2016, this tax case appeal was admitted by this Court on the following substantial questions of law; '1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the orders of Commissioner of Income Tax (Appeals) while calculating deduction under section 80HHC by reducing the profit element on sale of DEPB licence? 2. Whether the finding of the Tribunal is bad especially when the assessee has not fulfilled the conditions specified in the 3rd proviso to Section 80HHC(3) as the assessee's turnover had exceeded Rs.10 crores and therefore, the assessee is not eligible for claiming the deduction in respect of profit on sale of DEPB licence? 2/4 https://www.mhc.tn.gov.in/judis TCA.No.865 of 2016 3. Whether the finding of the Tribunal is proper especially when the assessee has not fulfilled the conditions specified in the 3rd proviso to Section 80HHC(3) for calculating deduction in respect of profit on sale of DEPB licences?” 3. 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 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). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4. 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.] 26.08.2022 3/4 https://www.mhc.tn.gov.in/judis TCA.No.865 of 2016 msr

Index : Yes / No R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. The Assistant Commissioner of Income Tax, Company Circle V(2), Chennai. 2. The Commissioner of Income Tax (Appeals)-3, Chennai-34. 3. The Income Tax Appellate Tribunal Madras 'D' Bench, Chennai, T.C.A.No. 865 of 2016 26.08.2022 4/4 https://www.mhc.tn.gov.in/judis