Commissioner Of Income Tax, Salem v. M/S.thakadoor Spinning Mills (P) Ltd., 1C, Ramalinga Chetty Road, Dharmapuri – 636 701

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 08.01.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI Commissioner of Income Tax,Salem. ...Appellant in both TCAVs. M/s.Thakadoor Spinning Mills (P) Ltd.,1C, Ramalinga Chetty Road,Dharmapuri – 636 701. ...Respondent in both TCA Appeals preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Chennai, ''C'' Bench, dated 30.04.2010 in ITA.Nos.98/Mds/2009 &194/Mds/2009 Assessment Year 2004-05 against the Appellate orderdate 28.11.2008 passed by the Commissioner of Income Tax(Appeals)11 Coimbatore, made in IT Appeal No.157C/2007-08 forthe Assessment year 2004-05, against the order date 29.02.2008,passed by the Additional Commissioner of Income Tax CentralRange, Coimbatore-18, made in CR No. Penalty /CR/CBE/2007-08 forthe Assessment year 2004-05. (Judgment was delivered by T.V.THAMILSELVI, J.) We have heard Ms.V.Pushpa, learned Standing Counsel for theappellant – Revenue and Ms.Sriniranjani Srinivasan for therespondent – Assessee. 2.These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainst the order dated 30.04.2010 made respectively inITA.Nos.98/Mds/2009 & 194/Mds/2009 on the file of the Income TaxAppellate Tribunal, Chennai, ''C'' Bench (for brevity, theTribunal) for the Assessment Year 2004-05. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeals were admitted on 14.02.2011 on the followingsubstantial question of law: “Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting thepenalty u/s 271D of Rs.71,50,000/- levied by theAssessing Officer on the ground that the assesseehad made borrowings in case exceeding Rs.20,000/-in violation of Section 269SS, holding that thetransactions were genuine even though theassessee had not established any reasonable casewithin the meaning of Section 273B?” 4.The learned Standing Counsel for the appellant submitsthat the above appeals are not pursued by the Revenue on accountof the Low Tax Effect in terms of Circular No.17/2019 dated08.08.2019 issued by the Central Board of Direct Taxes. By thesaid 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 respective casesis 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. va Sub Assistant RegistrarTo 1. The Income Tax Appellate Tribunal, Chennai, ''C'' Bench2. The Commissioner of Income Tax (Appeals)11, Coimbatore. 3. The Additional Commissioner of Income Tax, Central Range, Coimbatore. +1cc to Mr.G.Baskar, Advocate, S.R.No.1159+2cc to Mr.M.Swaminathan, Advocate, S.R.No.1430 & 1431 rld(CO)rv(03/02/2021) https://hcservices.ecourts.gov.in/hcservices/