Commissioner Of Income Tax, Trichy v. T.c.a

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 21.06.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE R.HEMALATHA T.C.A.Nos.894 & 895 of 2013 Commissioner of Income Tax, Trichy..Appellant in both TCAs v. Smt. T. Manjula,21, Vaduvood Middle street,Thillai Nagar,Tiruchy – 620 018. ...Respondent in both TCAs T.C.A. No.894 /2012 : Appeal preferred under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras, "A" Bench, dated 05.04.2013 inITA.No.1705/Mds/2012 for the Assessment Year 2005-2006. Appeal against the order of the Commissioner of Income Tax(Appeals) No.44 Williams Road, Contonment, Tiruchirapalli– 620 001 made in ITA.No.247/2010-11 dated 15.06.2012,Assessment year 2005-2006. Appeal against the order of the Additional Commissioner ofIncome Tax, Range-II, 44, Williams Road, Trichy – 620 001 madein PAN No. dated 28.12.2020 Assessment year 2005-2006. T.C.A. No.895/2012 : Appeal preferred under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras, "A" Bench, dated 05.04.2013 inITA.No.1706/Mds/2012 for the Assessment Year 2006-2007. Appeal against the order of the Commissioner of Income Tax(Appeals, No.44, Williams Road, Contonment, tiruchirapalli–625 001 made in ITA.No.246/2010-2011 dated 15.06.2012Assessment year 2006-2007. Appeal against the order of the Additional Commissioner ofIncome Tax Range-II, 44, Williams Road, Trichy – 620 001 made inPAN No.AASPM1558R dated 28.12.2010 Assessment year 2006-2007. https://hcservices.ecourts.gov.in/hcservices/ For Appellant : Ms.V.Pushpa(in both TCAs) Standing Counsel For Respondents : M.Kaushik (in both TCAs)COMMON JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Ms. V. Pushpa, learned Standing Counsel forthe appellant/Revenue and M. Kaushik, learned counsel 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 05.04.2013 made respectively inITA.Nos.1705/Mds/2012 & 1706/Mds/2012 on the file of the IncomeTax Appellate Tribunal, Chennai, ''C'' Bench (for brevity, theTribunal) for the Assessment Years 2005-2006 and 2006-2007. 3. The appeals were admitted on the following substantialquestions of law: “ (i) Whether on and facts and in thecircumstances of the case, the Tribunal was rightIn holding that the gross profit rate is to befixed at 10.5% as against 12.5% fixed by theassessing officer?? (ii) Whether on and facts and in thecircumstances of the case, the Tribunal was rightin holding that individual payments cannot beaggregated even if they are paid on the same dayand thereby deleting the disallowance underSection 40A3? (iii) Whether on and facts and in thecircumstances of the case, the Tribunal was rightin deleting the disallowance made under Section40A3 on the ground that said disallowance cannotbe made where the assessing officer had estimatedthe gross profit?” 4. The learned Standing Counsel appearing 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 08.08.2019 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 this case is lessthan 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 questions of law framed are left open. In the eventthe tax effect in all these cases are above the threshold limitfixed in the said Circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeals to be heardand decided on merits. No costs. Sd/- 5. In the light of the said submissions, the above Tax CaseAppeals are dismissed on account of the Low Tax Effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in all these cases are above the threshold limitfixed in the said Circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeals to be heardand decided on merits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar Rj To 1. The Income Tax Appellate Tribunal, Chennai,"A" Bench. 2. The Commissioner of Income Tax Trichy. 3. The Commissioner of Income Tax (Appeals) No.44, Williams Road, Contonment, Trichy – 600 0014. The Additional Commissioner of Income Tax (Appeals) No.44, Williams Road, Contonment, Trichy – 600 001 +1cc to Mr.M.Swaminathan, Advocate, S.R.No.28771 T.C.A.Nos. 894 & 895 of 2013 SR.NO.-II(CO)RGA(20/07/2021)