The Commissioner of Income-tax, Chennai v. Baghmar Finance Ltd
[Citation -2020-LL-0616-18]

Citation 2020-LL-0616-18
Appellant Name The Commissioner of Income-tax, Chennai
Respondent Name Baghmar Finance Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 16/06/2020
Assessment Year 2008-09
Judgment View Judgment
Keyword Tags genuine transaction • monetary limit • tax effect
Bot Summary: Respondent APPEALS under Section 260A of the Income Tax Act, 1961 against the common order dated 23.8.2013 made respectively in ITA.Nos. These appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961 are directed against the common order dated 23.8.2013 made respectively in ITA.Nos. The appeals were admitted on 24.11.2015 on the following substantial questions of law : i. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that the assessee company was the owner of the asset and entitled to depreciation of Rs.77,71,276/- and Rs.15,81,179 respectively ii. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the transfer of windmill to the assessee, by which, the assessee claimed ownership was a genuine transaction And iii. It is further submitted that the tax effect in the respective cases is less than the threshold limit. 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.


TCA.Nos.960 & 961/2015 In High Court of Judicature at Madras Dated : 16.6.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal Nos.960 & 961 of 2015 Commissioner of Income Tax, Chennai ...Appellant Vs M/s.Baghmar Finance Ltd., Chennai-79. ...Respondent APPEALS under Section 260A of Income Tax Act, 1961 against common order dated 23.8.2013 made respectively in ITA.Nos.1244 and 1257/Mds/2013 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench for assessment years 2008-09 and 2009-10. For Appellant: Mr.T.Ravikumar, SSC & Mrs.R.Hemalatha, SSC For Respondent: Mr.A.S.Sriraman COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for appellant Revenue and Mr.A.S. Sriraman, learned counsel appearing for respondent assessee. 1/4 http://www.judis.nic.in TCA.Nos.960 & 961/2015 2. These appeals, filed by Revenue under Section 260A of Income Tax Act, 1961 (for brevity, Act) are directed against common order dated 23.8.2013 made respectively in ITA.Nos.1244 and 1257/Mds/ 2013 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench (for short, Tribunal) for assessment years 2008-09 and 2009-10. 3. appeals were admitted on 24.11.2015 on following substantial questions of law : i. Whether, in facts and circumstances of case, Tribunal was right in holding that assessee company was owner of asset and entitled to depreciation of Rs.77,71,276/- and Rs.15,81,179 respectively ? ii. Whether, on facts and circumstances of case, Tribunal was right in holding that transfer of windmill to assessee, by which, assessee claimed ownership was genuine transaction ? And iii. Whether, on facts and circumstances of case, Tribunal was right in holding that cost of one windmill had to be allocated on pro- rata basis out of total cost of Rs.81 Crores alleged incurred by M/s.Surana Industries Ltd.? 4. learned Senior Standing Counsel for appellant submits that above appeals are not pursued by Revenue on account of low tax 2/4 http://www.judis.nic.in TCA.Nos.960 & 961/2015 effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central 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 raised 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. No costs. 16.6.2020 To Income Tax Appellate Tribunal, Chennai 'B' Bench. RS 3/4 http://www.judis.nic.in TCA.Nos.960 & 961/2015 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS TCA.Nos.960 & 961 of 2015 16.6.2020 4/4 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Baghmar Finance Ltd
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