Commissioner Of Income Tax Central I v. Shri.m.kanthilal

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN Commissioner of Income Tax Central I,No.108, Mahatma Gandhi Road,Chennai ... Appellant Vs Shri.M.Kanthilal ...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income TaxAct, 1961 against the order dated 20.08.2013 inI.T.A.No.718/Mds/2013 on the file of the Income Tax AppellateTribunal Chennai 'B' Bench for the assessment year 2006-07,preferred against the order of the commissioner of Income Tax(Appeals)-1, Chennai-34 dated 04-01-2013 made in ITANo.411/07-08 against the order dated 31-12-2007 passed by theAssistant Commissioner of Income Tax, Central Circle-I(4),Chennai for the Assessment year 2006-07. For Appellant : Mr.T.R.Senthil KumarFor Respondent : Mr.R.Sivaraman (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This tax case appeal has been filed against the orderof the Income Tax Appellate Tribunal dated 20.08.2013 inI.T.A.No.718/Mds/2013 in dismissing the appeal filed by theDepartment of Revenue against the order of the Commissioner ofIncome Tax (Appeals) by which the appeal filed by the assesseewas allowed. 2.Heard Mr.T.R.Senthil Kumar, learned Counsel for theappellant. https://hcservices.ecourts.gov.in/hcservices/1 the addition of Rs.26,06,666/- made on account ofunexplained jewellery disclosed under Section 132 (4)when it was retracted without any evidence to provehis claim? (ii)Whether the ITAT was right in directingto recompute interest u/s.234B after adjustment ofcash seized during search without considering theCBDT's clarification in F.No.256/105/2005 dated 13-07-2006 which do not permit application of cashseizure against the advance tax liability? (iii)Whether the ITAT was right in directingto recompute interest u/s.234B after reducing thecash seized during search by relying on the ITAT'sdecision in the case of V.Varadharajan which has notbeen accpeted by department's appeal pending beforethe High Court?" 4.Mr.T.R.Senthil Kumar, learned Counsel appearing onbehalf of the appellant would submit that the tax effect inthis case is less than Rs.1 crore and is covered by CircularNo.17/2019 dated 08.08.2019 issued by the Director, CentralBoard of Direct Taxes, Department of Revenue, Ministry ofFinance, Government of India, Delhi. As per the saidcircular, the monetary limit to file an appeal before the HighCourt is fixed at Rs.1 crore. In this case, tax effect isless than Rs.1 crore and therefore, the appeal has to bedismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetarylimit for filing appeal. Paragraph No.2 is usefully extractedas follows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para3 of the Circular mentioned above and accordingly,the table for monetary limits specified in Para 3of the Circular shall read as follows: 6.In view of the submissions made by the learnedcounsel appearing on behalf of the appellant and also in viewof the Circular No.17/2019 dated 08.08.2019 issued by theDirector, Central Board of Direct Taxes, Delhi, this Tax CaseAppeal is dismissed on account of tax effect. However, thesubstantial questions of law framed are left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS-VI) 6.In view of the submissions made by the learnedcounsel appearing on behalf of the appellant and also in viewof the Circular No.17/2019 dated 08.08.2019 issued by theDirector, Central Board of Direct Taxes, Delhi, this Tax CaseAppeal is dismissed on account of tax effect. However, thesubstantial questions of law framed are left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant Registraray To1.Commissioner of Income Tax Central I,No.108, Mahatma Gandhi Road,Chennai.2.The Income Tax Appellate Tribunal,B Bench, Chennai.3.The Deputy Commissioner of Income Tax,Central Circle-1(4), Chennai-34.4.The Commissioner of Income Tax (Appeals)-1,Chennai-34.5.The Assistant Commissioner of Income Tax,Central Circle-I(4), Chennai.T.C.A.No.323 of 2018 PM(CO)CB(04/02/2020)