Principal Commissioner of Income-tax-1, Coimbatore v. Sakthi Sugars Ltd
|Principal Commissioner of Income-tax-1, Coimbatore
|Sakthi Sugars Ltd.
|HIGH COURT OF MADRAS
|Date of Order
|substantial question of law • commercial production • monetary limit • low tax effect
|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.