Commissioner Of Income Tax-I, Coimbatore v. M/S.sri Shankar Traders, Coimbatore

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 19.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.673 to 675 of 2010 Commissioner of Income Tax-I, Coimbatore...Appellant in all the TCAsVsM/s.Sri Shankar Traders, Coimbatore...Respondent in TCA.673/2010M/s.Murugan Exports, Coimbatore...Respondent in TCA.674/2010Shri.Super Cloth, Coimbatore...Respondent in TCA.675/2010 APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 09.10.2009 made in IT(SS)A.Nos.57to 59/Mds/2007 on the file of the Income Tax Appellate Tribunal,Chennai 'A' Bench for the block assessment period 1991-92 to2001-02 against the order of the Commissioner of Income Tax(Appeals) -II, Coimbatore order dated 27/12/2006 made IT AppealNos.324-C/06-07, 325-C/06-07 and 323-C/06-07 and against theorder of the Deputy Commissioner of Income Tax, CentralCircle -III, Coimbatore order dated 28.09.2008 made inPAN.No.AAEFS6963J,AACFM0928K/Cen.III/CBEandAAEFS6962K/Cen-III/CBE respectively for the Block period 1991-92 to2001-02.For Appellant:Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, SC For Respondents : Mr.A.S.Sriraman (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel for the respondents – assessees. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common order https://hcservices.ecourts.gov.in/hcservices/ dated 09.10.2009 made in IT(SS)A.Nos.57 to 59/Mds/2007 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe block assessment period 1991-92 to 2001-02. 3. The appeals were admitted on 26.7.2010 on the followingsubstantial question of law :“Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law indeleting the penalty levied by the AssessingOfficer under Section 158BFA(2), even thoughthe assessee himself admitted bogus creditby way of bogus purchases in M/s.SuperCloth, M/s.Shankar Traders and M/s.MuruganTraders is valid ?” 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 08.8.2019 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect in the respective 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 appealsto be heard and decided on merits. No costs. Sd/- Assistant Registrar //True Copy// To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench.2.The Commissioner of Income Tax (Appeals)-II, Coimbatore.3.The Deputy Commissioner of Income Tax, Central Circle -III, Coimbatore. +1 cc to M/s.T.R.Senthil Kumar,Advocate Sr.No. 70468AKM/27.09.19/2P-5C / https://hcservices.ecourts.gov.in/hcservices/