Commissioner Of Income Tax, Chennai v. M/S.premier Marine Products

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 12.12.2019 Commissioner of Income Tax,Chennai.... Appellant/AppellantVs.M/s.Premier Marine Products,No.3/284, Muttukadu Raod,Neelangarai, Chennai 600 041.PAN ... Respondent/Respondent PRAYER : Appeal under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal, Madras“D” Bench, dated 14.10.2016 passed in ITA.No.1463/mds/2012, forthe assessment year 2008-2009 against the order of theCommissioner of Income Tax Appeal VIII, Chennai, dated11/04/2012 made in ITA.No.91/10-11/(A)-VIII for the assessmentyear 2008-09, against the order of the Deputy Commissioner ofIncome Tax Business Circle IV, Chennai, dated 31.12.2010 made inPAN.AAAFP3039N for the assessment year 2008-09. JUDGMENT This Tax Case Appeal has been preferred by the Revenueagainsttheorderdated14.10.2016passedinITA.No.1463/mds/2012 on the file of the Income Tax AppellateTribunal, Chennai 'D' Bench for the assessment year 2008-2009. 2.The order of the CIT(A)-VIII, Chennai, dated 11.04.2012for the assessment year, 2008-2009 was challenged before theTribunal by the Revenue as well as the Assessee. The AppellateTribunal dismissed the same holding that nothing has been shownby either of the parties to interfere with the order of the 1/3 https://hcservices.ecourts.gov.in/hcservices/ CIT(A)-VIII. Against the order of the Appellate Tribunal only,the present appeal has been filed. 3.The appeal was admitted on 27.03.2018 on the followingsubstantial questions of law : “Whether on the facts and circumstances of the case,the Tribunal was right in holding that no additionunder Section 40A(3)of the Income Tax Act, 1961 can bemade towards cash purchase exceeding Rs.20,000/-effected from middle men and traders at fish catchingcentre by applying the provisions of Rule 6DD(e)(iii)of the Income Tax Rules, 1962 by assuming that thepurchases were made from the fishermen directly?” 4.Mrs.S.Premalatha,learnedcounselfor Mr.M.Swaminathan, learned Senior Standing Counsel appearing onbehalf of the appellant would submit that the tax effect in thiscase 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 said circular,the monetary limit to file an appeal before the High Court isfixed at Rs.1 crore. In this case, tax effect is less than Rs.1crore and therefore, the case has to be dismissed. 5.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the said Circular, which prescribes monetarylimit for filing appeal is usefully extracted as follows: 2.As a step towards further management of litigation,it has been decided by the Board that monetary limitsfor filing of appeals in income-tax cases be enhancedfurther through amendment in Para 3 of the Circularmentioned above and accordingly, the table formonetary limits specified in Para 3 of the Circularshall read as follows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, the Tax Case Appeal is 2/3 https://hcservices.ecourts.gov.in/hcservices/ dismissed on account of tax effect. However, the substantialquestion of law framed is left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs.Sd/-Assistant Registrar(C.S.VIII) /True Copy/ Sub Assistant Registrar 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, the Tax Case Appeal is 2/3 https://hcservices.ecourts.gov.in/hcservices/ dismissed on account of tax effect. However, the substantialquestion of law framed is left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs.Sd/-Assistant Registrar(C.S.VIII) /True Copy/ Sub Assistant Registrar To1.The Commissioner of Income Tax,Chennai.2.The Income Tax Appellate Tribunal 'D' Bench,Chennai.3.The Commissioner of Income Tax Appeal VIII,Chennai.4.The Deputy Commissioner of Income Tax Business Circle IV, Chennai.+1 cc to M/s.M.Swaminathan,Advocate Sr.No. 103462+1 cc to M/s.S.Sridhar,Advocate Sr.No. 103773AKM/27.01.2020/3P-7C / T.C.A.No.114 of 2018 3/3