Commissioner Of Income Tax v. K.Inbasagaran

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 23.08.2021 CORAM :

THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM AND THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.No.316 of 2013 Commissioner of Income Tax, Chennai.

... Appellant/Appellant Vs.

K.Inbasagaran ... Respondent/Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, "D" Bench, dated 31.05.2012 in I.TA.No.627/Mds/2009, Assessment Year 1994-95.

Against the order of the Commissioner of Income Tax Appeals IV Chennai dated 29/01/2009 in Appeal No.CIT (A) IV CHE/795/0607 for the Assessment year 1994-95 and against the order of the Deputy Commissioner of Income tax Central Circle 1(2) Chennai 34 dated 31/03/2000 PAN/GIR No.AAAP1333K for the Assessment Year 1994-95.

For Appellant : Mr.J.Narayanaswamy Senior Standing Counsel For Respondent : Mr.A.S.Sriraman

J U D G M E N T

(Judgment was delivered by T.S. SIVAGNANAM, J.) We have heard Mr.J.Narayanaswamy, learned Senior Standing Counsel for the appellant/Revenue and Mr.A.S.Sriraman for Mr.S.Sridhar, learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 ("the Act" for brevity) is directed against the order dated 31.05.2012 made in I.TA.No.627/Mds/2009 on the file of the Income Tax Appellate Tribunal, Chennai, "D" Bench ("the Tribunal" for brevity) for the Assessment Year 1994-95.

3.The appeal was admitted on 26.11.2013 on the following substantial question of law:

"Whether on the facts and in the circumstances of the case, the Tribunal was right in dismissing the revenue's appeal respect to the proceedings of the Assessing Officer u/s.143(3) r/w.263?"

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 08.08.2019 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. It is further submitted that the tax effect in this case is less than the threshold limit.

5.In the light of the said submissions, the above Tax Case Appeal is dismissed as withdrawn on account of the Low Tax Effect. The substantial question of law framed is left open. In the event the tax effect in this case 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. No costs.

Sd/- Assistant Registrar(CS II) //True Copy// Sub Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Chennai, "D" Bench Rajaji Bhavan Besant Nagar, Chennai-90.

2.The Commissioner of Income Tax Appeal IV, 121 Nungambakkam High Road, Chennai-34.

3.The Deputy Commissioner of Income Tax, Central Circle (2), 121, Nungambakkam High Road, Chennai-34.

4.The Assistant Commissioner of Income Tax Circle XIII, 121, Nungambakkam High Road, Chennai-34.

+1cc to Mr.Sridhar, Advocate Sr.42221 T.C.A.No.316 of 2013 mg[co] srg 02/11/2021