Commissioner Of Income Tax,Coimbatore v. Shri S.a.balasubramaniam

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 No.595 of 2013 Commissioner of Income tax,Coimbatore... Appellant/Respondent -vs- Shri S.A.Balasubramaniam,2/67 VIP Nagar,Vilankurich P O.,Coimbatore-641 035... Respondent/AppellantAppeal under Section 260A of the Income-tax Act, 1961,against the order dated 06.03.2013, on the file of the Income-taxAppellateTribunal'B'Bench,Chennai,in I.T.A.No.10/Mds/2012 for the assessment year 2008-09 as againstthe Order dated 25.11.2011 on the file of the Commissioner ofIncome Tax (Appeals)-I, Coimbatore, made in Appeal No.226/10-11, against the order dated 31.12.2010 on the file of the DeputyCommissioner of Income Tax, Circle -III, Coimbatore vide PANACJPB 5690G for the Assessment Year 2008-09. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel :assisted by Ms.K.G.Usharani,Junior Standing Counsel This appeal filed by the appellant/Revenue under Section 260Aof the Income-tax Act, 1961 is directed against the order dated06.03.2013, passed by the Income-tax Appellate Tribunal 'B' https://hcservices.ecourts.gov.in/hcservices/ Bench, Chennai, in I.T.A.No.10/Mds/2012 for the assessment year2008-09. 2.The above appeal was admitted, on 07.11.2013, on thefollowing substantial questions of law:-“(i) Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunal wasright in reducing the addition made under Section68 to Rs.85,00,000/- from that of Rs.1,62,51,280/-made by the assessing officer?(ii) Whether based on the material availablebefore it, the Income Tax Appellate Tribunal couldhave come to the conclusion that in respect ofcertain amounts there is clear proximity of inflowand outflow and the same should be reasonable setoff against each other?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Junior Standing Counsel forthe appellant and Mr.R.Venkatanarayana, learned counsel, forM/s.Subbaraya Aiyar, Padmanabhan & Ramamani, for the respondent. 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.17/2019,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 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. abr Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To1.The Deputy Commissioner of Income Tax, Circle-III, Coimbatore.1.The Deputy Commissioner of Income Tax, Circle-III, Coimbatore. 2.The Commissioner of Income Tax (Appeals)-I, Coimbatore. Coimbatore. 3.The Income-tax Appellate Tribunal 'B' Bench, Chennai. +1cc to Mr.subbaraya Aiyar, Advocate, SR.No.77318 +1cc to Mr.T.R.Senthil Kumar, Advocate, SR.No.72309 T.C.A.No.595 of 2013 Kak(23/10/2019)