The Commissioner Of v. M/S.Mathi Leathers Pvt

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 11.10.2018 CORAM :

THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.1571 of 2008 Commissioner of Income Tax, Chennai. ... Appellant -vsM/s Mathi Leathers Pvt. Ltd.

18. Kumarappa Street, Periamet, Chennai.

... Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Chennai 'B' Bench, dated 25.04.2008 in ITA No.2484/Mds/2007, for the Assessment year 2000-01.

For Appellant : Mr.S.Rajesh For Respondent : Mr.R.Sivaraman

JUDGMENT

[Judgement of the Court was delivered by T.S.Sivagnanam, J.] This appeal by the Revenue is directed against the order passed by the Income Tax Appellate Tribunal, Madras 'B' Bench, dated 25.04.2008 in ITA No.2484/Mds/2007, for the Assessment year 2000-01.

2.Heard Mr.S.Rajesh, learned Counsel for the Revenue and Mr.R.Sivaraman counsel for the respondent.

3. This Appeal has been admitted on 18.11.2008, on the following Substantial Question of Law; "Whether on the facts and circumstances of the case, the Tribunal was right in deleting the addition made on account of cash credits without verifying the credit worthiness of the creditors?

4.We have perused the order of Assessment as well as the Order passed by the Commissioner of Income Tax, and we find that the tax effect in this appeal is lesser than the threshold limit mentioned in Circular No.3 of 2008, dated 11.07.2018, issued by the Central Board of Direct Taxes, which fixes the monetary limit as Rs.50,00,000/- for the Department to pursue the matter. Furthermore, the Revenue has not been able to point out any distinguishing features, by which the Circular No.3 of 2018, dated 11.07.2018, cannot be applied.

5.Thus, for the above reasons, the Revenue cannot pursue this Appeal in view of the low tax effect. Hence, the Appeal is dismissed and the Substantial Question of Law, framed for consideration, is left open. No costs.

[T.S.S., J.] & [V.B.S., J.] 11.10.2018 mrm To 1.The Income Tax Appellate Tribunal Madras 'B' Bench. T.S.Sivagnanam, J.

and V.Bhavani Subbaroyan, J.

msk/mrm T.C.A.No.1571 of 2008

11.10.2018