Commissioner Of Income Tax,Chennai v. Gold Line Exports,32, Kamarajapuram West,Karur

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.430 and 431 of 2013 Commissioner of Income Tax,Chennai... Appellant/Respondent -vs- Gold line Exports,32, Kamarajapuram West,Karur... Respondent/Appellant Appeal under Section 260A of the Income-tax Act, 1961,against the order dated 30.10.2012, on the file of the Income-tax Appellate Tribunal 'B' Bench, Chennai, in I.T.A.No.900(Mds)/2011 for the assessment year 2005-06., arising upon the order of the Commissioner of Income Tax(Appeals) Tiruchirapalli dated 23.03.2011 in ITA No.269/07-08arising againt the Assessment Order dated 12.12.2007, of theDeputy Commissioner of Income Tax, Tiruchirappalli, (Circle -II)for the Assessment Year 2005-06. Commissioner of Income Tax,Chennai... Appellant/Appellant -vs- Gold line Exports,32, Kamarajapuram West,Karur... Respondent/Respondent Appeal under Section 206A of the Income-tax Act, 1961,against the order dated 30.10.2012, on the file of the Income-tax Appellate Tribunal 'B' Bench, Chennai, in I.T.A.No.975(Mds)/2011 for the assessment year 2005-06, https://hcservices.ecourts.gov.in/hcservices/ arising upon the order of the Commissioner of Income Tax(Appeals) Tiruchirappalli, dated 23.03.2011 in ITA No.269/07-08arising against the Assessment Order dated 12.12.2007 of theDeputy Commissioner of Income Tax, Tiruchirappalli, Circle-II. For Appellant:Ms.S.Premalatha,(In both Appeals)Junior Standing Counsel:For Mr.M.Swaminathan,Senior Standing Counsel For Respondent :Mr.V.S.Jayakumar(In both Appeals) COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the appellant/Revenue under Section260A of the Income-tax Act, 1961, are directed against thecommon order dated 30.10.2012, passed by the Income-taxAppellate Tribunal 'B' Bench, Chennai in I.T.A.No.900(Mds)/2011and I.T.A.No.975(Mds)/2011 for the assessment year 2005-06. 2.The above appeals were admitted on 12.11.2013, on thefollowing substantial questions of law:-“(i) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that the addition made by the AssessingOfficer with respect to the loan advance credit,merely on the ground that it was a trade practiceof the assessee's business, to receive securitydeposit from the weavers while yarn are given tothe weavers for job work and the deposits werereturned when weaver bring back the weaved cloth,without going into the details of genuineness,identity and creditworthiness of those weavers?(ii) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that Section 40a(ia) is applicable onlyto the amounts remaining due for payment at theend of the financial year?(iii) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that, the provisions of Section 40a(ia)has no application with respect to the paymentsalready made during the financial year?” 3.Heard Ms.S.Premalatha, learned Junior Standing Counsel forMr.M.Swaminathan, learned Senior Standing Counsel for the https://hcservices.ecourts.gov.in/hcservices/ appellant and Mr.V.S.Jayakumar, learned counsel for therespondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019,dated 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. 3.Heard Ms.S.Premalatha, learned Junior Standing Counsel forMr.M.Swaminathan, learned Senior Standing Counsel for the https://hcservices.ecourts.gov.in/hcservices/ appellant and Mr.V.S.Jayakumar, learned counsel for therespondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019,dated 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 is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeals to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar abrTo 1.The Assistant Commissioner of Income-tax, Circle-II, Trichy. 2.The Commissioner of Income-tax (Appeals), No.44, Williams Road, cantonment, Tiruchirapalli-620 001. 3.The Income-tax Appellate Tribunal 'B' Bench, Chennai. +1cc to Mr.M.Swaminathan, Advocate Sr.72340+1cc to Mr.V.S.Jayakumar, Advocate Sr.71914 T.C.A.Nos.430 and 431 of 2013 rsk[co]srg 05/11/2019