Commissioner Of Income Tax, Circle – Iii, Madurai v. Bella Premier Happy Hygiene Care Private Limited, Ambaturai Gandhigram, Dindigul District – 624 309

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 19.02.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI Commissioner of Income Tax,Circle – III, Madurai. ... AppellantVs. Bella Premier Happy Hygiene Care Private Limited,Ambaturai Gandhigram,Dindigul District – 624 309. ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "A" Bench, dated 23.05.2014 in I.TA.No.525/Mds/2014Assessment Year 2009-10. Preferred against the order of the Income Tax AppellateTribunal 'A' Bench, Chennai made on ITA No. 525/mds/2014 dated23/05/2014. Preferred against the order of the Commissioner ofIncome Tax(Appeals)-I, Madurai made on ITA No.5/2012-13 dated14/2/2014. Preferred against the order of the AssistantCommissioner of Income Tax Circle III, Madurai made in PAN/GIRNo. dated 30/12/2011. For Respondent : no appearance We have heard Mr.M.Swaminathan, learned Senior StandingCounsel for the appellant/Revenue. 2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainst the order dated 23.05.2014 made in I.TA.No.525/Mds/2014on the file of the Income Tax Appellate Tribunal, Chennai, "A"Bench (for brevity, the Tribunal)for the Assessment Year 2009-10. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 26.11.2014 on the followingsubstantial questions of law: “1)Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in cancelling the penalty under Section 271(1)(c) when the assessee made a penaltyineligible claim as per statute? 2) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin cancelling the penalty under Section 271(1)(c)when the assessee has made an incorrect claimtowards “loss on account of currency fluctuation”when the return of income of the assessee iscovered under Section 44AB?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is 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 areless 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 questions of law framed are 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. va To 1. The Income Tax Appellate Tribunal, Chennai, "A" Bench, Chennai. Chennai. 2. The Commissioner of Income Tax (Appeals)-I, Madurai. 3. The Assistant Commissioner of Income Tax Circle III, Madurai. +1 cc to Mr.M. Swaminathan, Advocate, SR.NO.10247, dated 22/02/2021 22/02/2021 T.C.A.No.942 of 2014 GSM(CO)NS(03/05/2021)