The Hon'ble Mr.Justice HULUVADI G.RAMESH AND The Hon'ble Dr. Justice ANITA SUMANTH T.C.A. No.511 of 2007 Commissioner of Income Tax, Chennai. .. Appellant Versus M/s.Mercantile Credit Corporation Ltd., 36-40, Armenian Street, Chennai 600 001. .. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the Order of the Income Tax Appellate Tribunal Madras 'A' Bench, dated 31.03.2006 in ITA. No.1792/Mds/1996.
For Appellant .. Mr.T.R.Senthil Kumar For Respondent .. Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyar -----
JUDGMENT
The Tax Case Appeal filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal Madras 'A' Bench, dated 31.03.2006 in ITA. No.1791/Mds/1996, has been admitted on 20.06.2007 for consideration of the following substantial questions of law:
“Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to depreciation on assets which were retained by the lessees even after expiry of the lease?
2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessing officer has to prove the non user of the assets to deny depreciation?
3. Whether in the facts and circumstances of the case, the assets which are not used for any income earning activity by the assessee, but left with the lessees even after the expiry of the lease can be said to be used in the business of the assessee?”
2. Circular instruction issued by the Central Board of Direct Taxes No.21/2015, dated 10.12.2015 stipulates that appeals shall not be filed/ pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.20 lakhs. In the instant case, the tax effect is less than the monetary limit imposed and the appeal is, hence, dismissed as not pressed, preserving the substantial question of law for determination in an appropriate case. No costs.
(H.G.R.,J) (A.S.M.,J) 25.01.2017 2/2 vga HULUVADI G.RAMESH, J AND Dr.ANITA SUMANTH,J vga T.C.A.No.511 of 2007 25.01.2017 2/2 http://www.judis.nic.in