In High Court of Judicature at Madras Dated : 16.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.887 of 2010 Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Flakt India Ltd, Chennai-77. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 19.3.2010 made in ITA.No.578/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for assessment year 2003-04. For Appellant : Mr.Karthik Ranganathan, SSC assisted by Mr.S.Rajesh, JSC For Respondent : No appearance Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.Karthik Ranganathan, learned Senior Standing Counsel appearing for appellant Revenue. 1/4 http://www.judis.nic.in TCA.No.887 of 2010 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 19.3.2010 made in ITA.No. 578/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for assessment year 2003-04. 3. appeal was admitted on 02.11.2010 on following substantial questions of law : i. Whether, on facts and in circumstances of case, Tribunal was right in deleting disallowance with respect to unpaid liabilities amounting to Rs.56,40,543/- that was taken over from ABB Ltd., on ground that said amount was not charged to profit and loss account ? And ii. Whether, on facts and in circumstances of case, Tribunal was right in deleting disallowance with respect to provision of Rs.55,43,213/- towards obsolete stock on same ground that said amount was not charged to profit and loss account? 4. learned Senior Standing Counsel for appellant submits that above appeal is not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or 2/4 http://www.judis.nic.in TCA.No.887 of 2010 pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in this case is less than threshold limit. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeal to be heard and decided on merits. 16.8.2019 Internet: Yes To Income Tax Appellate Tribunal, Chennai 'D' Bench. RS 3/4 TCA.No.887 of 2010 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.887 of 2010 16.8.2019 4/4 Commissioner of Income-tax, Chennai v. Flakt India Ltd