Commissioner Of Income Tax,Central Circle I, Chennai v. M/S.devaraj & Others688, Trunk Road, Poonthamallee,Chennai - 600 056

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.114 of 2015 Commissioner of Income Tax,Central Circle I, Chennai. ...Appellant Vs M/s.Devaraj & others688, Trunk Road, Poonthamallee,Chennai - 600 056. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 21.09.2011 made in IT(SS).No.82/MDS/2006 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe Block Period 01.04.1986 to 13.02.1996 against the orderpassed by the Assistant Commissioner of Income Tax, CentralCircle-I, Coimbatore dated 27.03.2006 for the Block period01.04.1986 to 13.02.1996. For Appellant: Mr.T.R.Senthil Kumar, SSC and Ms.K.G.UsharaniFor Respondent: Mr.A.S.Sriraman for Mr.S.Sridhar JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel, and Ms.K.G.Usharani, learned Counsel appearing for theappellant/revenue and Mr.A.S.Sriraman, learned counsel forMr.S.Sridhar,learnedcounselappearingfortherespondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated21.09.2011 made in IT(SS).No.82/MDS/2006 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for the BlockPeriod 01.04.1986 to 13.02.1996. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal has been filed by raising the followingsubstantial question of law :“Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in directing the Assessing Officer to estimatethe income at 5% of the total turnover when theincome has not been estimated by the AssessingOfficer at 8% as assumed by the Income Tax AppellateTribunal and there is no case for estimating theincome at such a low rate?" 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 question of law framed is 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. cse Sd/- Asst.Registrar (Insp Cell ) /true copy/Sub Asst. Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax,Central Circle I Chennai 3.The Assistant Commissioner of Income Tax,Central Circle I, Coimbatore +1 cc to mr.T.R.Senthil kumar Advocate sr73613 +1 cc to Mr.S.Sridhar Advocate sr74511 TCA.No.114 of 2015 pm(co)aa22/10/2019