Commissioner Of Income Tax, Chennai v. M/S. Nikky Enterprises (P) Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 25.03.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.616 of 2014 Commissioner of Income Tax, Chennai... Appellant /Respondent v. M/s. Nikky Enterprises (P) Ltd.,184, Rangarajapuram Main Road,Kodambakkam, Chennai - 600 024... Respondent/Appellant Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 12.11.2010 in I.T.(SS)A.No.73/Mds/2008for the Block Period from 01.04.1987 to 11.09.1997 as againstthe order dated 23.04.2007 by the office of the Commissioner ofIncome Tax(Appeals)-5 in ITA.No.317/05-06 period from:01-04-1987to 11-09-1997 and as against the order dated:05-09-2005 by theoffice of the Assistant Commissioner of Income-Tax CompanyCircle IV(4) Period From:1987-88 to 1996-97 & 97-98(part) and asagainst the order dated 28.06.2001 by the office of the DeputyCommissioner of Income Tax Central Circle 1(5), periodFrom:1987-88 to 1996-97 & 97-98(part). For Appellant : Mr. T.R. Senthil Kumar, Senior Standing Counsel Asst. by Ms. K.G. Usha Rani, Jr. S.C. For Respondent : Mr. M. Kaushik JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) We have heard Mr. T.R. Senthil Kumar, learned SeniorStanding Counsel for the appellant/Revenue and Mr. M.Kaushik forthe respondent/Assessee. 2.The appeal, filed by the Revenue under Section 260A of the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Act, 1961 (for short, the Act) is directed againstthe order dated 12.11.2010 made in I.T.(SS)A.No.73/Mds/2008 onthe file of the Income Tax Appellate Tribunal, Chennai, ''B''Bench (for brevity, the Tribunal) for the Block Period from01.04.1987 to 11.09.1997 3.The appeal was admitted on the following substantialquestion of law: “(i) Whether on the facts and circumstancesof the case, the Tribunal was right in deletingthe penalty amount of Rs.35,64,456/- initiatedunder section 158 FA(2)?" 4.The learned Senior Standing Counsel appearing for theappellant submits that the above appeal is not pursued by theRevenue on account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 crore. It is further submitted that the taxeffect in this case is less than the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar Rj To 1.The Income Tax Appellate Tribunal, Chennai, ''B'' Bench. Chennai, ''B'' Bench. 2.The Commissioner of Income Tax(Appeals)-5 Chennai. 3.The Commissioner of Income Tax, Chennai. 4.The Assistant Commissioner of Income Tax company circle IV(4), Chennai. company circle IV(4), Chennai. 5.The Deputy Commissioner of Income Taxes Central Circle 1(5) Chennai. Central Circle 1(5) Chennai. +1cc to Mr.T.R.Senthil kumar, Advocate, S.R.No.19766 +1cc to Mr.S.Sridhar, Advocate, S.R.No.19322 T.C.A.No.616 of 2014 SSN(CO)CB(11/08/2021)