Principal Commissioner of Income-tax-1, Coimbatore v. Sakthi Sugars Ltd
[Citation -2020-LL-0706-24]

Citation 2020-LL-0706-24
Appellant Name Principal Commissioner of Income-tax-1, Coimbatore
Respondent Name Sakthi Sugars Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 06/07/2020
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags substantial question of law • commercial production • monetary limit • low tax effect
Bot Summary: 866/Mds/2016 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2010-11. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 23.6.2017 made in ITA.No. The appeal has been admitted on 02.8.2018 on the following substantial question of law : Whether the Appellate Tribunal is right in allowing depreciation on the plant and machinery of the Sivagangai Beverages Unit of the assessee, when that unit never commenced commercial production and the assets were not 'put to use' for production 4. The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. In the event the tax effect 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 appeal to be heard and decided on merits.


TCA.No.385 of 2018 In High Court of Judicature at Madras Dated : 06.7.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.385 of 2018 Principal Commissioner of Income Tax-1, Coimbatore ...Appellant Vs M/s.Sakthi Sugars Ltd., Coimbatore-18 ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 23.6.2017 made in ITA.No.866/Mds/2016 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2010-11. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC For Respondent: Mr.Vijayaraghavan for M/s.Subbaraya Aiyer Padmanabhan Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel, assisted by Ms. K.G.Usharani, learned Standing Counsel appearing for appellant Revenue and Mr.Vijayaraghavan, learned counsel appearing for 1/4 http://www.judis.nic.in TCA.No.385 of 2018 respondent. 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 (for short, Act) is directed against order dated 23.6.2017 made in ITA.No.866/Mds/2016 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench (for brevity, Tribunal) for assessment year 2010-11. 3. appeal has been admitted on 02.8.2018 on following substantial question of law : Whether Appellate Tribunal is right in allowing depreciation on plant and machinery of Sivagangai Beverages Unit of assessee, when that unit never commenced commercial production and assets were not 'put to use' for production ? 4. learned Senior Standing Counsel for appellant submits that above appeal is not pursued by Revenue on account of low tax 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 this case is less than 2/4 http://www.judis.nic.in TCA.No.385 of 2018 threshold limit. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial question of law framed is left open. In event tax effect is above threshold 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. 06.7.2020 To Income Tax Appellate Tribunal, Chennai 'C' Bench. RS 3/4 http://www.judis.nic.in TCA.No.385 of 2018 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.385 of 2018 06.7.2020 4/4 http://www.judis.nic.in Principal Commissioner of Income-tax-1, Coimbatore v. Sakthi Sugars Ltd
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