Commissioner Of Income Tax,Central Circle, Coimbatore v. Shri G.mohan

In the High Court of Judicature at Madras Dated : 18.06.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.470 of 2014 Commissioner of Income Tax,Central Circle, Coimbatore. ...Appellant -vs- Shri G.Mohan,35, Thirumalai Nagar,South 1[st] Street,P.N.Road, Tirupur-641 602.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 19.11.2013 made in I.T.A.No.517/Mds/2013 on thefile of the Income Tax Appellate Tribunal 'B' Bench, Chennai forthe assessment year 2004-05 against the order of theCommissioner of Income Tax (Appeals) II Coimbatore, dated30/01/2013 I.T.Appeal No.11/10-11 for the assessment year 2004-05 and against the order of the Assistant Commissioner of IncomeTax, Central Circle-I, Coimbatore, dated 31/12/2019 PAN/GIRNo. for the Assessment year, 2004-2005. For Appellant :Mr.T.R.Senthil Kumar,Senior Standing Counsel &Ms.K.G.Usha Rani,Standing Counsel Judgment was delivered by T.S.Sivagnanam,J. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel for theappellant-Revenue and Mr.N.Devanathan, learned counsel andMr.Suganthiraj, learned counsel for the respondent-assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated19.11.2013 made in I.T.A.No.517/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2004-05. 3. The appeal was admitted on 16.09.2014 on the followingsubstantial questions of law: “1. Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in allowing depreciation when the incomedetermined on the basis of net accretion in wealthbetween the first year and the last year?2. Whether on the facts and circumstances ofthe case, the Tribunal was justified in allowingthe claim of depreciation when the assessee hasfailed to produce any details regarding the assetsand their usage for the years 2002-03 to 2007-08? 3. Whether on the facts and circumstances ofthe case, the Tribunal was right in allowingdepreciation when the assessee's income is taxedon a rough and ready method on approximate basis,is there any justification for granting statutoryallowance?” 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. No costs. Sd/-Assistant Registrar(CS-IV) //True copy// Sub Assistant Registrar abr To 1.The Income Tax Appellate Tribunal B Bench, Chennai. 2. The Commissioner of Income Tax (Appeals) II, Coimbatore. 3. The Assistant Commissioner of Income Tax, Central Circle-I, Coimbatore. Central Circle-I, Coimbatore. 4. The Commissioner of Income Tax, Central Circle, Coimbatore. Central Circle, Coimbatore. AD(CO)GMY(23/09/2020) TCA.No.470 of 2014