T.C.A.No.665 of 2019 IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 21.01.2020 CORAM : HONOURABLE MR. JUSTICE N. KIRUBAKARAN and HONOURABLE MR. JUSTICE P. VELMURUGAN T.C.A.No.665 of 2019 Principal Commissioner of Income Tax 2, No.63, Race Course Road, Coimbatore. Appellant Vs M/s.Thudiyalur Co-operative Agricultural Services Ltd., No.1, Mettupalayam Road, Thudiyalur, Coimbatore - 641 034. PAN: AAAAT3838L Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against order dated 06.02.2019 in I.T.A.No.2278/Chny/2017 on file of Income Tax Appellate Tribunal Chennai 'C' Bench for assessment year 2007-08. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel. For Respondent : Mr.M.Kaushik for Mr.S.Sridharan http://www.judis.nic.in 1/5 T.C.A.No.665 of 2019 JUDGMENT (Judgment of Court was delivered by N.KIRUBAKARAN, J) This tax case appeal has been filed against order of Income Tax Appellate Tribunal dated 06.02.2019 in I.T.A.No.2278/Chny/2017 in allowing appeal filed by assessee against order of Commissioner of Income Tax (Appeals) by which appeal filed by assessee was dismissed. 2.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for appellant. 3.This tax case appeal is admitted on following substantial question of law: "Whether on facts and in circumstances of case, Hon'ble Tribunal is right in law in holding that assessee is eligible for deduction under Section 80P(4) of Income Tax Act, when there is violation of Explanation (a) below Section 80P(4) read with provisions of Section 5 (cciv) and (ccv) of banking Regulation Act?" http://www.judis.nic.in 2/5 T.C.A.No.665 of 2019 4. Mr.T.R.Senthil Kumar, learned Senior Standing Counsel appearing on behalf of appellant would submit that tax effect in this case is less than Rs.1 crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per said circular, monetary limit to file appeal before High Court is fixed at Rs.1 crore. In this case, tax effect is less than Rs.1 crore and therefore, appeal has to be dismissed. 5.This Court perused circular dated 08.08.2019 and Paragraph No.2 of Circular, which prescribes monetary limit for filing appeal. Paragraph No.2 is usefully extracted as follows: "2.As step towards further management of litigation, it has been decided by Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of Circular mentioned above and accordingly, table for monetary limits specified in Para 3 of Circular shall read as follows: http://www.judis.nic.in 3/5 T.C.A.No.665 of 2019 S.No. Appeals / SLPs in Income-tax Monetary Limit (Rs.) matters 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000" 6.In view of submissions made by learned counsel appearing on behalf of appellant and also in view of Circular No.17/2019 dated 08.08.2019 issued by Director, Central Board of Direct Taxes, Delhi, this Tax Case Appeal is dismissed on account of tax effect. However, substantial question of law framed is left open. In event tax effect is above 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. No costs. (N.K.K.,J.) (P.V.,J.) 21.01.2020 ay To Principal Commissioner of Income Tax 2, No.63, Race Course Road, Coimbatore. http://www.judis.nic.in 4/5 T.C.A.No.665 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN, J. ay T.C.A.No.665 of 2019 Dated:21.01.2020 http://www.judis.nic.in 5/5 Principal Commissioner of Income-tax-2, Coimbatore v. Thudiyalur Co-Operative Agricultural Services Ltd