Commissioner of Income-tax Coimbatore v. Elgi Ultra Industries Ltd
[Citation -2020-LL-0128-13]

Citation 2020-LL-0128-13
Appellant Name Commissioner of Income-tax Coimbatore
Respondent Name Elgi Ultra Industries Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 28/01/2020
Judgment View Judgment
Keyword Tags industrial activity • monetary limit • total turnover • excise duty • tax effect • sales tax • job work
Bot Summary: Respondent Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal 'D' Bench, Chennai dated 26.10.2005 passed in I.T.A.No. In Judgment in TCA No.30/2011 dated 28.01.2020 2/4 Appellate Tribunal, by raising the following substantial questions of law: 1. Whether on the facts and in the circumstances of the case the Income-Tax Appellate Tribunal was right in law in holding that, the assessee is eligible for deduction under Section 80IA of the Act, even though the assessee is not engaged as such in any Industrial activity of its own except assembling on job work basis 2.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that, the Excise Duty and Sales Tax are to be excluded from the total turnover for the purpose of computing the Income under Section 80HHC of the Income Tax Act, 1961 2. When the matter is taken up for final hearing, the learned Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 08.08.2019, wherein it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1 Crore. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue is dismissed as not pressed, keeping open the substantial questions of law for determination in an appropriate case.


Judgment in TCA No.30/2011 dated 28.01.2020 (The Commissioner of Income Tax V. M/s.Elgi Ultra Industries Ltd.) 1/4 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.01.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal No.30 of 2011 Commissioner of Income Tax Coimbatore. ... Appellant Vs. M/s.Elgi Ultra Industries Ltd., Elgi House, Trichy Road, Coimbatore. ... Respondent Appeal filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal 'D' Bench, Chennai dated 26.10.2005 passed in I.T.A.No.1790/Mds/2003. For Appellant : Mrs.K.G.Usha Rani Junior Standing Counsel For Respondent : Mr.N.V.Balaji JUDGMENT (Judgment of Court was delivered by DR.VINEET KOTHARI,J.) This Tax Case Appeal has been filed by Revenue calling in question correctness of order passed by Income Tax http://www.judis.nic.in Judgment in TCA No.30/2011 dated 28.01.2020 (The Commissioner of Income Tax V. M/s.Elgi Ultra Industries Ltd.) 2/4 Appellate Tribunal, by raising following substantial questions of law: "1. Whether on facts and in circumstances of case Income-Tax Appellate Tribunal was right in law in holding that, assessee is eligible for deduction under Section 80IA of Act, even though assessee is not engaged as such in any Industrial activity of its own except assembling on job work basis? 2.Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in law in holding that, Excise Duty and Sales Tax are to be excluded from total turnover for purpose of computing Income under Section 80HHC of Income Tax Act, 1961? 2. When matter is taken up for final hearing, learned Standing Counsel brought to our notice Circular instruction issued by Central Board of Direct Taxes vide Circular No.17/2019 dated 08.08.2019, wherein it is stipulated that appeals shall not be filed/pursued by Department before High Court in cases where tax effect does not exceed Rs.1 Crore (Rupees One Crore Only). http://www.judis.nic.in Judgment in TCA No.30/2011 dated 28.01.2020 (The Commissioner of Income Tax V. M/s.Elgi Ultra Industries Ltd.) 3/4 3. In instant case, tax effect is said to be less than monetary limit imposed and therefore, appeal filed by Revenue is dismissed as not pressed, keeping open substantial questions of law for determination in appropriate case. No costs. (V.K.J.) (R.S.K.J.) 28.01.2020 Sgl To Income Tax Appellate Tribunal, 'D' Bench, Chennai. http://www.judis.nic.in Judgment in TCA No.30/2011 dated 28.01.2020 (The Commissioner of Income Tax V. M/s.Elgi Ultra Industries Ltd.) 4/4 DR.VINEET KOTHARI, J. And R. SURESH KUMAR, J. Sgl T.C.A.No.30 of 2011 28.01.2020 http://www.judis.nic.in Commissioner of Income-tax Coimbatore v. Elgi Ultra Industries Ltd
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