Commissioner Of Income Tax v. M/S.future Gaming Solutions Pvt. Ltd., 335

In the High Court of Judicature at MadrasDated : 27.08.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Commissioner of Income Tax,63, Race Course Road,Coimbatore - 641 018....Appellant/RespondentVs M/s.Future Gaming Solutions Pvt. Ltd.,335-339, Daisy Plaza, 6th Street,Gandhipuram, Coimbatore - 641 012.PAN: ...Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 07.05.2014 made in ITA.No.1616/MDS/2012 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2008-09 and against the order of theCommissioner of Income Tax (Appeals)1, Coimbatore and made inAppeal No. 49/2011-2012 PAN.No. date of order12.06.2012 and Deputy Commissioner of Income Tax, Company CircleI(3) Coimbatore and made in P.A. No/GIR No. AABCM9751G dated oforder 28.06.2011. For Respondent: Mr.A.S.Sriraman for Mr.S.Sridhar We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel, assisted by Ms.K.G.Usharani, learned counsel appearingfor the appellant/revenue and Mr.A.S.Sriraman, learned counselfor Mr.S.Sridhar, learned counsel appearing for therespondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated https://hcservices.ecourts.gov.in/hcservices/ 07.05.2014 made in ITA.No.1616/MDS/2012 on the file of theIncome Tax Appellate Tribunal, Chennai 'C' Bench for theassessment year 2008-09. 3.The appeal was admitted on 17.02.2015 on the followingsubstantial questions of law :“1.Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in cancelling the penalty levied underSection 271(1)(c) when the assessee concealedthe difference amount of Rs.32,61,310/- on saleof Capital Gain which was noticed by theAssessing Officer and thereafter the assesseefiled the revised computation of capital gainand paid the tax thereon? 2.Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in cancelling the penalty levied underSection 271(1)(c), when the assessee has notdeclared the short term capital loss as requiredunder Section 94(7) of the Income Tax Act?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax(Appeals)1, Coimbatore(Appeals)1, Coimbatore 3.The Deputy Commissioner of Income TaxCompany Circle I(3) CoimbatoreCompany Circle I(3) Coimbatore +1 CC to Mr.S.Sridhar, Advocate sr 74508. +1 CC to Mr.T.R.Senthilkumar, Advocate sr 73636 TCA.No.20 of 2015 RR(CO)SP(13/11/2019)