Commissioner Of Income Tax,Chennai v. D C Seth (Huf),58 Devaraja Mudali Street,Chennai 600 003

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 13.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.988 of 2019 Commissioner of Income Tax,Chennai. ... Appellant Vs D C Seth (HUF),58 Devaraja Mudali Street,Chennai 600 003. ...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act,1961 against the order dated 10.06.2002 in I.T.A.No.483(Mds)/1993 on the file of the Income Tax Appellate Tribunal Chennai'C' Bench for the assessment year 1986-87. against the order passed dated 27.11.1992 in IT/WT/GT/AppealNo.317/92-93 on the file of the Commissioner of Income Tax(Appeals)VI, Madras, against the order dated 27.03.1992 inPAN/GIR.No.3795D on the file of the Assistant Commissioner ofIncome Tax, City Circl-III(3), Madras-6. For Appellant : Ms.Hemalatha, Junior Standing Counsel. J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This tax case appeal has been filed against the order ofthe Income Tax Appellate Tribunaldated 10.06.2002 inI.T.A.No.483(Mds)/1993 in partly allowing the appeal filed bythe assessee against the order of the Income Tax AppellateTribunal by which the appeal filed by the assessee was partlyallowed. 2.Heard Ms.Hemalatha, learned Junior Standing Counsel forthe appellant. https://hcservices.ecourts.gov.in/hcservices/ 3.This tax case appeal is admitted on the followingsubstantial questions of law: "(i)Whether in the facts and circumstances of thecase, the Appellate Tribunal was right in holding thatno interest u/s.139(8) and Sec.217 can be levied in thecase of re-assessment proceedings? (ii)Whether in the facts and circumstances of thecase, view of the Appellate Tribunal that no interestu/s.139(8) and Sec.217 is leviable was right, in viewof the insertion of explanation 2 to Sec.139(8) witheffect from 01.04.1985?" 4. Ms.Hemalatha, learned Junior Standing Counsel appearingon behalf of the appellant would submit that the tax effect inthis case is less than Rs.1 crore and is covered by CircularNo.17/2019 dated 08.08.2019 issued by the Director, CentralBoard of Direct Taxes, Department of Revenue, Ministry ofFinance, Government of India, Delhi. As per the said circular,the monetary limit to file an appeal before the High Court isfixed at Rs.1 crore. In this case, tax effect is less than Rs.1crore and therefore, the appeal has to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para 3of the Circular mentioned above and accordingly, thetable for monetary limits specified in Para 3 of theCircular shall read as follows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, this Tax Case Appeal isdismissed on account of tax effect. However, the substantial questions of law framed are left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS I) //True Copy// ay To Sub Assistant Registrar 1.Commissioner of Income Tax,Chennai.2.The Income Tax Appellate Tribunal,Chennai 'C' Bench,Chennai. 3.The Commissioner of Income Tax (Appeals)V,Madras. 4.The Assistant Commissioner of Income Tax,City Circle III(3), Madras-6.City Circle III(3), Madras-6. +1cc to Mr.T.Ravi Kumar, Senior Standing Counsel, in Sr.No.103845 T.C.A.No.988 of 2019 SSI(CO)CS/30/01/2020