Commissioner Of Income Tax, Central Circle Ii (2), Chennai-34 v. M/S.annai Builders Real Estate Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA Commissioner of Income Tax,Central Circle II (2),Chennai-34. ...Appellant/AppellantVs M/s.Annai Builders Real Estate Pvt. Ltd.,No.76, Medavakkam Main Road,Madipakkam, Chennai-600 091.PAN: ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 30.08.2013 made in I.T.A.No.269/Mds/2013 on thefile of the Income Tax Appellate Tribunal 'B' Bench, Chennai forthe assessment year 2006-07 against the order of theCommissioner of Income Tax(Appeals)-II, No.46, (Old No.108)Mahatma Gandhi Road, Chennai-34 made in ITA.No.325/10-11/A 11dated 27.11.2012 for the Assessment Year 2006-07 as against theorder of Assistant Commissioner of Income Tax, Central Circle II(2), Chennai - 34 made in PA.No./G.I.No.AADCA6643H dated31.12.2010 for the Assessment Year 2006-2007. Judgment was delivered by T.S.Sivagnanam,J. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usha Rani, learned Junior StandingCounsel appearing for the appellant – Revenue andMr.A.S.Sriraman, learned counsel for the respondent – assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated30.08.2013 made in I.T.A.No.269/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2006-07. 3. The appeal was admitted on 16.09.2014 on the followingsubstantial questions of law :“1. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in telescopingthe unexplained closing stock of earlieryear in the subsequent year againstunexplained money received as loan?2. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in telescopingthe unexplained closing stock of earlieryear and the unexplained money received asloan of the subsequent year when both theissues are different and do not have anynexus?” 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. Sd/- Assistant Registrar(CS IV)//True Copy// Sub Assistant Registrar abr https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal 'B' Bench, Chennai. 2.The Commissioner of Income Tax, Central Circle II(2), Chennai 34 Chennai 34 3.The Commissioner of Income Tax, (Appeals)-II, No.46, Old No.108, Mahatma Gandhi Road, Chennai-34. 4.The Assistant Commissioner of Income Tax, Central Circle II(2), Chennai 34. 5.The Assistant Registrar, Income Tax Appellate Tribunal, Chennai. Chennai. TCA.No.460 of 2014 AK(CO)KKV/05/10/2020