Commissioner Of Income Tax Ii Madurai v. Shri.t.kodeeswaran

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal Nos.514 and 515 of 2009 Commissioner of Income Tax IIMaduraiAppellantVs.Shri.T.KodeeswaranRespondent Tax case Appeals filed under section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,Madras B Bench, Chennai dated 21.10.2018 made in ITA.No.2089/MDS/2007 and 2090/MDS/2007 respectively against ITA.No. 034and 035 of 2007 passed by the Commissioner of Income Tax(Appeals) II, Madurai dated 10.07.2007 against the proceedingsof the Income Tax Officer, Ward – I (1), Virudhunagar in RCL-1272/I(1)VNR/86-87 and PA.No. PQ-1272/I(1)/VNR/86-87 dated28/09/1999 against the Order passed by the Income tax officer,Ward I (1 Virudhunagar in PAN No. 49-007-PQ- 1272 dated 31.03.99for the Assessment year 1986-87 and 1987-1988 respectively. For Appellant : Mr.M.Swaminathan Senior Standing Counsel COMMON JUDGMENT(Delivered by DR.VINEET KOTHARI,J) These Tax Case Appeals have been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, Madras 'B' Bench, Chennai, dated21.10.2018 made in ITA No.2089/Mds/2007 and 2090/Mds/2007respectively, by raising the following substantial question oflaw: "(i) Whether, on the facts and circumstances ofthe case the Tribunal was right in holding thatfailure to file return due to non-filing of returnfor earlier years is a reasonable cause warrantingdeletion of penalty under section 271(1)(a)?" https://hcservices.ecourts.gov.in/hcservices/ 2. When the matters are taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the appeals are dismissedas not pressed, preserving the substantial question of law fordetermination in an appropriate case. Sd/-Assistant Registrar//True Copy// Sub Assistant RegistrarTO1.The Income Tax, Appellate Tribunal, Bench B Chennai.2. The Commissioner of Income Tax (Appeals) -I, Madurai.3.Income Tax Officer, Ward – I(1), Virudhunagar.+1cc to Mr. S.Sridhar, Advocate, S.R.No. 80569+1cc to Mr. S.Premalatha, Advocate, S.R.No. 79849 RGN(CO)GN(18/12/2018)