Commissioner Of Income Tax v. M/S Sengamala Thayar

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 24.08.2021 CORAM :

THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM AND THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.No.960 of 2013 Commissioner of Income Tax, Central Circle, ... Appellant Vs.

M/s.Sengamala Thayar Educational Trust, No.1, Main Road, Sundarakottai Post, Mannargudi.

... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, "C" Bench, dated 04.04.2013 in I.T.A.No.1742/Mds/2010, Assessment Year 1999-2000 as against the order dated 21.06.2010 of the Commissioner of Income Tax (Appeals) II in ITA No.108/0607 and as against the assessment order dated 28.03.2006 by the Joint Commissioner of Income Tax, Chennai.

For Appellant :

Mr.T.R.Senthil Kumar Senior Standing Counsel and Mrs.K.G.Usha Rani Standing Counsel For Respondent :

Mr.T.Vasudevan

J U D G M E N T

(Judgment was delivered by T.S. SIVAGNANAM, J.) We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel and Mrs.K.G.Usha Rani, learned Standing Counsel for the appellant/Revenue and Mr.T.Vasudevan, 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 04.04.2013 made in I.T.A.No.1742/Mds/2010 on the

file of the Income Tax Appellate Tribunal, Chennai, "C" Bench ("the Tribunal" for brevity) for the Assessment Year 1999-2000. 3.The appeal was admitted on 13.02.2014 on the following substantial question of law:

"Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in confirming the earning of huge agricultural income based on certificate for mere ownership of land without verifying the genuineness of the agricultural operations, detailed accounts and vouchers?"

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5.In the light of the said submissions, the above Tax Case Appeal is dismissed as withdrawn on account of the Low Tax Effect.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, "C" Bench 2.The Commissioner of Income Tax, Central Circle, 3.The Commissioner of Income Tax Appeals-II, Chennai-34.

4.The Joint Commissioner of Income Tax, +1cc to Mr.T.R.Senthil Kumar, Sr St. Counsel Sr No.42217 T.C.A.No.960 of 2013 SVI(CO) PR (21/09/2021)