Commissioner Of Income-Tax, Coimbatore v. M/S.tussor Machine Tools India P Ltd

In the High Court of Judicature at Madras Dated : 17.06.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.449 of 2014 Commissioner of Income-tax,Coimbatore....Appellant/RespondentVs M/s.Tussor Machine Tools India P Ltd.,1/247, Avanashi Road, Muthugoundenpudur,Neelambur PO, Coimbatore-641 014....Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 14.02.2013 made in ITA No.1270/Mds/2012 on thefile of the Income Tax Appellate Tribunal 'B' Bench, Chennai forthe assessment year 2008-09 against the order of theCommissioner of Income Tax (Appeals)1, Coimbatore dated03.04.2012 in I.T.A. No. 70/2011-2012 against the order of theAssistant Commissioner of Income Tax, Company Circle 1(1)Coimbatore dated 29.12.2010 and made in P.A. No./GIR No.AACCT165/R For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel :assisted byMs.K.G.Usha Rani,Junior Standing Counsel For Respondent:Mr.R.Sivaraman We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usha Rani, learned Junior StandingCounsel appearing for the appellant–Revenue and Mr.R.Sivaraman,learned counsel for the respondent–assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated14.02.2013 made in ITA No.1270/Mds/2012 on the file of the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2008-09. 3. The appeal was admitted on 12.08.2014 on the followingsubstantial questions of law : “1. Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in deleting thepenalty levied under Section 271 AA byapplying sub-clause (ii) and (iii) ofSection 271 AA. 2. Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthough the assessee furnished incorrectinformation to the assessing officer inrespect of international transaction, thepenalty should not be levied under Section271 AA and only Section 271 G should beinvoked in such cases. 3. Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in law inholding that though the assessee has failedto report the international transactions,which it is required to do so, penalty underSection 271 AA should not be levied. 4. Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in law inholding that the penalty under Section 271AA is not leviable since no addition wasmade in the assessment in respect ofinternational transactions.” 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 08.8.2019 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 this case is lessthan the threshold limit. 5. In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. s/d- Assistant Registrar True Copy Sub-Assistant RegistrarTo1.The Income Tax Appellate Tribunal 'B' Bench, Chennai.2.The Commissioner of Income Tax (Appeals)1Coimbatore3.The Assistant Commissioner of Income TaxCompany Circle1(1) CoimbatoreTCA.No.449 of 2014AD(CO)SP(04/08/2020)