Commissioner Of Income Tax, Chennai v. Shri R.sathyam 3, Flat I, Lynwood Avenue, Mahalingapuram, Chennai -34

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.03.2021 CORAM THE HON'BLE MR.JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.Nos.1042 and 1043 of 2014 Commissioner of Income Tax,Chennai....Appellant/Respondentin all appealsVs. Shri R.Sathyam3, Flat I, Lynwood Avenue,Mahalingapuram,Chennai -34....Respondent/Appellantin all appeals Tax Case Appeals in T.C.A.Nos.1042 and 1043 of 2014preferred under Section 260A of the Income Tax Act, 1961,against the order of the Income Tax Appellate Tribunal, Madras,“D” Bench, dated 17.03.2014 in I.T.A.Nos.613/Mds/2011 and614/Mds/2011, respectively for the Assessment Years 2001-02 and2002-03 respectively. Against the order passed by the Assistant Commissioner ofIncome Tax(Appeals)XII, Chennai, made in ITA.No.278 of 2008-09,dated 28.01.2011 and ITA.No.276 of 2008-09, dated 28.01.2011,respectively and against the orders passed by the AssistantCommissioner of Income Tax, Circle XV, Chennai made in GIR.No.AAAHR0262H dated 29.12.2008, for the assessment years 2001-02 &2002-03 respectively. For Appellant : Mr.T.Ravikumar Senior Standing Counsel in all appeals For Respondent : No appearance C O M M O N J U D G M E N T (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.T.Ravikumar, learned Senior StandingCounsel for the appellant/Revenue. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeals, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 (for short, the Act), are directedagainsttheorderdated17.03.2014madeinI.T.A.Nos.613/Mds/2011 and 614/Mds/2011, on the file of theIncome Tax Appellate Tribunal, Madras, “D” Bench (for brevity,the Tribunal) for the Assessment Years 2001-02 and 2002-03respectively. 3.The above appeals were admitted on 07.01.2014 on thefollowing substantial question of law: “Whether on the facts and circumstances of thecase, the Tribunal was right in holding that thereassessment proceeding is bad in law merely on theground that the reasons for reopening did not mentionthat the provision of Section 147 of the Income TaxAct is being invoked on account of omission or failureon the part of the assessee to disclose fully andtruly all material facts necessary for the assessment?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the Low Tax Effect in terms of Circular No.17/2019dated 08.08.2019 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 these cases isless than the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeals are dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe event the tax effect in these 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 aboveappeals to be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant Registrar mknTo 1.The Income Tax Appellate Tribunal, Madras, “D” Bench. 2.The Commissioner of Income Tax,Chennai.3.Assistant Commissioner of Income Tax, Circle XV, Chennai.+1cc to Mr.T.Ravikumar, Advocate, S.R.No.18741 T.C.A.Nos.1042 and 1043 of 2014 BS(CO)BE(30/07/2021)