Commissioner of Income-tax -I, Tiruchirapalli v. Metro Fabrics
[Citation -2019-LL-0819-138]
Citation | 2019-LL-0819-138 |
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Appellant Name | Commissioner of Income-tax -I, Tiruchirapalli |
Respondent Name | Metro Fabrics |
Court | HIGH COURT OF MADRAS |
Relevant Act | Income-tax |
Date of Order | 19/08/2019 |
Assessment Year | 2003-04 |
Judgment | View Judgment |
Keyword Tags | low tax effect • monetary limit • consideration of depb • sale proceed • accrual basis • profit on transfer of depb scheme • taxable perquisite |
Bot Summary: | 694/Mds/2007 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2003-04. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 21.5.2010 made in ITA.No. The appeal was admitted on 10.1.2011 on the following substantial questions of law : i. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the face value of DEPB is chargeable to tax on accrual basis and that the profit on sale of DEPB representing the excess of sale proceeds of DEPB over its face value is liable to be considered under Section 28(iiid) at the time of its sale And ii. The learned Senior Standing Counsel for the appellant submits that 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. It is further submitted that the tax effect in this case is less than the threshold limit. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. 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. |