Commissioner Of Income Tax, Central-Iii, Chennai v. Shri M.vaishraj

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 15.6.2020 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA TAX CASE APPEAL NOS.702 & 703 OF 2010 Commissioner of Income Tax,Central-III, Chennai ...Appellant VsShri M.Vaishraj ...Respondent PRAYER: APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 30.10.2009 made respectively inITA.Nos.1201 and 1209/Mds/2009 on the file of the Income TaxAppellate Tribunal, Chennai 'C' Bench respectively for theassessment years 2004-05 and 2001-02 preferred against the orderof the Commissioner of Income Tax(Appeals)_II, Chennai – 34,dated 06.05.2009, made in ITA.Nos.345 and 349 of 2006-07,against the order dated 29.12.2006, made in ACAPV0312Q for theassessment year 2001-02 and 2004-05 respectively passed by theAssistant Commissioner of Income Tax Central Circle (III)3,Chennai-34. For Appellant : Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC For Respondent : No appearance We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue. 2. These appeals, filed by the Revenue under Section 260A of theIncome Tax Act, 1961, are directed against the common order https://hcservices.ecourts.gov.in/hcservices/ dated 30.10.2009 made respectively in ITA.Nos.1201 and1209/Mds/2009 on the file of the Income Tax Appellate Tribunal,Chennai 'C' Bench for the assessment years 2004-05 and 2001-02. 3. The appeals were admitted on 17.8.2010 on the followingsubstantial question of law : “Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe alleged gifts credited to the capitalaccount could not be assessed as theassessee's income from undisclosed sourceswhen the genuineness of the gifts and thecapacity of the donors have not been provedand when the human probabilities and theeconomic realities would not support theclaim of such large gifts from donors whosefinancial status was lower than that of theassessee ?” 4. The learned Senior Standing Counsel for the appellant submitsthat the above appeals are not pursued by the Revenue on accountof the low tax effect in terms of Circular No.17/2019 dated08.8.2019 issued by the Central Board of Direct Taxes. By thesaid 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. Sd/-Assistant Registrar(CO MDU ) //True copy// Sub Assistant Registrar RS To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax(Appeals)_II, Chennai 34 3.The Commissioner of Income Tax(Appeals)-II, Chennai-34 4.The Assistant Commissioner of Income Tax, Central Circle (III)-3, Chennai-34 Central Circle (III)-3, Chennai-34 TCA.Nos.702 & 703 of 2010 SSV(CO)KKV/15/10/2020