The Commissioner of Income-tax, Madurai v. Thiagarajar Mills Ltd
[Citation -2019-LL-0820-132]

Citation 2019-LL-0820-132
Appellant Name The Commissioner of Income-tax, Madurai
Respondent Name Thiagarajar Mills Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 20/08/2019
Assessment Year 2002-03
Judgment View Judgment
Keyword Tags computation of deduction • low tax effect • monetary limit
Bot Summary: Respondent APPEALS under Section 260A of the Income Tax Act, 1961 against the common order dated 14.1.2011 made in ITA.Nos. 1175/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench respectively for the assessment years 2002-03 to 2004-05 and 2004-05. These appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961, are directed against the common order dated 14.1.2011 made in ITA.Nos. 435 of 2011 : i. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in setting aside the order of the Commissioner of Income Tax and directed the Assessing Officer to grant interest under Section 244A of the Act is valid And ii. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in directing the Assessing Officer to grant interest under Section 244A of the Act even though the refund did not exceed 10 of the tax demand arising from the order of assessment under Section 143(3) of the Act 4. In the light of the said submissions, the above tax case appeals are dismissed on account of the low tax effect. In the event the tax effect in the respective cases 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 appeals to be heard and decided on merits.


In High Court of Judicature at Madras Dated : 20.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.432 to 435 of 2011 & MP.Nos.1,1 and 1 of 2011 Commissioner of Income Tax, Madurai ...Appellant Vs M/s.Thiagarajar Mills Ltd., Madurai-8. ...Respondent APPEALS under Section 260A of Income Tax Act, 1961 against common order dated 14.1.2011 made in ITA.Nos.1173 to 1175/Mds/2010 and CO.No.71/Mds/2010 in ITA.No.1175/Mds/2010 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench respectively for assessment years 2002-03 to 2004-05 and 2004-05. For Appellant: Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SC For Respondent: Mr.R.Srinivasan COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.M.Swaminathan, learned Senior Standing Counsel assisted by Ms.V.Pushpa, learned Standing Counsel appearing for 1/4 TCA.Nos.432-435/2011 appellant Revenue and Mr.R.Srinivasan, learned counsel appearing for respondent - assessee. 2. These appeals, filed by Revenue under Section 260A of Income Tax Act, 1961, are directed against common order dated 14.1.2011 made in ITA.Nos.1173 to 1175/Mds/2010 and CO.No.71/Mds/ 2010 in ITA.No.1175/Mds/2010 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench respectively for assessment years 2002-03 to 2004-05 and 2004-05. 3. appeals were admitted on 31.10.2011 on following substantial questions of law : TCA.No.432 of 2011 : Whether, on facts and in circumstances of case, Appellate Tribunal was right in holding that interest under Section 234D cannot be levied for period prior to 01.6.2003 is valid ? TCA.Nos.433 & 434 of 2011 : i. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in law in holding that computation of deduction under Section 80HHC had to be worked out without deducting deduction available to assessee under Section 2/4 http://www.judis.nic.in TCA.Nos.432-435/2011 80IA of Act even though not considering Sub- Section 9A inserted under Section 80IA with effect from 01.4.1999 is valid ? and ii. Whether, on facts and in circumstances of case, Appellate Tribunal was right in law in holding that interest under Section 234D cannot be levied for period prior to 01.6.2003 is valid ? And TCA.No.435 of 2011 : i. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in law in setting aside order of Commissioner of Income Tax (Appeals) and directed Assessing Officer to grant interest under Section 244A of Act is valid ? And ii. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in law in directing Assessing Officer to grant interest under Section 244A of Act even though refund did not exceed 10% of tax demand arising from order of assessment under Section 143(3) of Act? 4. learned Senior Standing Counsel for appellant submits that above appeals are not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central 3/4 http://www.judis.nic.in TCA.Nos.432-435/2011 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in respective cases is less than threshold limit. 5. In light of said submissions, above tax case appeals are dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect in respective cases is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeals to be heard and decided on merits. Consequently, connected MPs are also dismissed. No costs. 20.8.2019 Internet: Yes To Income Tax Appellate Tribunal, Chennai 'B' Bench. TCA.Nos.432 to 435 of 2011 & MP.Nos.1,1 and 1 of 2011 4/4 Commissioner of Income-tax, Madurai v. Thiagarajar Mills Ltd
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