COMMISSIONER OF INCOME vs. M/S. PREM TEXTILE

TCA.No.909 of 2015 In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.909 of 2015 Commissioner of Income Tax, Trichy.

...Appellant Vs M/s.Prem Textile International, 32, Ramakrishnapuram, karur - 639 001 [PAN: AAAFP42191] ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 30.01.2015 made in ITA.No.149/MDS/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2010-11. For Appellant : Mr.M.Swaminathan, SSC and Ms.V.Pushpa, SC For Respondent : Mr.A.S.Sriraman for Mr.S.Sridhar JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.M.Swaminathan, learned Senior Standing Counsel, and Ms.V.Pushpa, learned Standing Counsel appearing for the appellant/revenue 1/4 http://www.judis.nic.in TCA.No.909 of 2015 and Mr.A.S.Sriraman, learned counsel for Mr.S.Sridhar, learned counsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 30.01.2015 made in ITA.No.149/MDS/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2010-11. 3.The appeal was admitted on 14.10.2015 on the following substantial questions of law : “(i) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that receipts from sale of carbon credits are to be treated as capital receipt not assessable to tax? (ii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the receipts from the sale of carbon credits are entitled for deduction under Section 80IA with respect to the wind mill division? and (iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled for deduction under Section 80IA with respect to the wind mill division by following the decision of the Madras High Court in the case of Velayuthasamy Spinning Mills?" 4.The learned Senior Standing Counsel for the appellant submits that 2/4 http://www.judis.nic.in TCA.No.909 of 2015 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. 5.In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law framed are left open. 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. No costs. (T.S.S.J.) (V.B.S.J.) 27.08.2019 cse Speaking (or) Non Speaking Order Index : Yes (or) No To 1.M/s.Prem Textile International, 32, Ramakrishnapuram, karur - 639 001. 2.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 3/4 http://www.judis.nic.in TCA.No.909 of 2015 T.S.SIVAGNANAM,J. AND V.BHAVANI SUBBAROYAN,J. cse TCA.No.909 of 2015 27.08.2019 4/4 http://www.judis.nic.in