Judgt. dt. 5.6.2020 in T.C.A.556/2013 CIT v. Viking Textiles P. Ltd. 1/4 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 5.6.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (A) No.556 of 2013 Commissioner of Income Tax Coimbatore. Appellant Vs. M/s.Viking Textiles P. Ltd., 505, Avinashi Road, Tirupur. PAN: AACV7564P Respondent Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, 'D' Bench, Chennai, dated 30.11.2011 made in ITA No.1570/Mds/2011. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Mr.R.Sivaraman JUDGMENT (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 Appellate Tribunal, 'D' Bench, Chennai, dated 30.11.2011 made in ITA http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.556/2013 CIT v. Viking Textiles P. Ltd. 2/4 No.1570/Mds/2011, for Assessment Year 2007-2008, by raising following substantial questions of law: "(i) Whether under facts and circumstances of case, Hon'ble Income Tax Appellate Tribunal was right in law in holding that profits of windmill for purpose of computing deduction under Section 80IA is to be determined on basis of annual landing cost of electricity purchased by assessee from Tamilnadu Electricity Board? (ii) Whether under facts and circumstances of case, Hon'ble Income Tax Appellate Tribunal was right in law in holding that price of Rs.2.70 per unit at which assessee sold its power to Tamilnadu Electricity Board cannot be equated with market rate as understood for purpose of section 80 IA (8)? (iii) Whether under facts and circumstances of case, Hon'ble Income Tax Appellate Tribunal was right in law in holding that price of Rs.3.50 per unit at which assessee purchases electricity from Tamil Nadu Electricity Board corresponds to market http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.556/2013 CIT v. Viking Textiles P. Ltd. 3/4 value, in computing deduction under Section 80 IA?" 2. When matter is taken up for hearing, learned Senior Standing Counsel brought to our notice Circular instruction issued by Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 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.1,00,00,000/- (Rupees One Crore). 3. In instant case, tax effect is said to be less than monetary limit imposed and therefore, Appeal filed by Revenue is dismissed, as withdrawn, keeping open substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (R.S.K.,J.) 5.6.2020 Index : Yes/No Internet : Yes/No ssk. To 1. Commissioner of Income Tax Coimbatore. 2. Income Tax Appellate Tribunal, 'D' Bench, Chennai. 3. M/s.Viking Textiles P. Ltd., 505, Avinashi Road, Tirupur. http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.556/2013 CIT v. Viking Textiles P. Ltd. 4/4 DR.VINEET KOTHARI, J. and R.SURESH KUMAR, J. ssk. Tax Case (A) No.556 of 2013 5.6.2020. http://www.judis.nic.in Commissioner of Income-tax, Coimbatore v. Viking Textiles P. Ltd