Commissioner Of Income Tax,Coimbatore v. Shri.p.pachamuthu

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.1003 and 1004 of 2014 T.C.A.No.1003 of 2013:- Commissioner of Income Tax,Coimbatore... Appellant/Respondent -vs- Shri.P.Pachamuthu,C/o S.Sridhar, Advocate,112/1, Periyar Street,Erode... Respondent/Appellant Appeal under Section 260A of the Income-tax Act, 1961,against the order dated 26.09.2013, on the file of the Income-taxAppellateTribunal'B'Bench,Chennai,inI.T.A.No.1702/Mds/2012 for the assessment year 2007-08. T.C.A.No.1004 of 2013:-Commissioner of Income Tax,Coimbatore... Appellant/Appellant-vs- Shri.P.Pachamuthu,Prop., Sabaris Leather Exports,Sakthi Bhavani Connection Road,B.P.Agraharam, Erode-638 005... Respondent/Respondent Appeal under Section 206A of the Income-tax Act, 1961,against the order dated 26.09.2013, on the file of the Income-taxAppellateTribunal'B'Bench,Chennai,inI.T.A.No.1817/Mds/2012 for the assessment year 2007-08. TCA.Nos.1003 to 1004 of 2014: Against the order of the commissioner of Income Tax(Appeals)-I, Coimbatore dated 26.9.2019 for the Assessment year 2007-08,against the order of Income Tax Officer Ward-I(4), Erode made inPAN:AVEPP9855D for the Assessment year 2007-08. https://hcservices.ecourts.gov.in/hcservices/ For Appellant: Mr.T.R.Senthil Kumar,(In both Appeals) Senior Standing Counsel : assisted by Ms.K.G.Usharani, Junior Standing Counsel For Respondent: Mr.Niranjan Rajagopalan(In both Appeals) For M/s.G.R.Associates ****** 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 26.09.2013, passed by the Income-taxAppellate Tribunal 'B' Bench, Chennai, in I.T.A.Nos.1702 &1817/Mds/2012 for the assessment year 2007-08. 2.The above appeals were admitted on 10.12.2014, on thefollowing substantial questions of law:-“T.C.A.No.1003 of 2014:-(i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatSection 40A(3) cannot be applied in assessee'scase and therefore the addition made under thatsection is to be deleted?(ii) Whether based on material evidencesavailable before it, the Tribunal could have cometo the conclusion that the assessee had not paidfor its purchases otherwise than through accountpayee cheque?T.C.A.No.1004 of 2014:-(i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in upholding theorder of the CIT(A) that the addition made by theAssessing Officer towards the creditors which werenot explained by the assessee is to be deleted?(ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatunexplained credits cannot be considered as incomeof the assessee since the business income of theassessee has been estimated as a percentage of itssales?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Junior Standing Counsel forthe appellant and Mr.Niranjan Rajagopalan, learned counsel, forM/s.G.R.Associates, for the respondent. 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 Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Junior Standing Counsel forthe appellant and Mr.Niranjan Rajagopalan, learned counsel, forM/s.G.R.Associates, for the respondent. 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(Insp cell) //True Copy// Sub Assistant Registrar abrTo 1.The Income-tax Appellate Tribunal 'B' Bench, Chennai. 2.The Commissioner of Income-tax (Appeals)-I, Coimbatore. 3.The Income Tax Officer, Ward-I(4), Erode +1cc to Mr.T.R.Senthil Kumar, Advocate SR.72915 T.C.A.Nos.1003 and 1004 of 2014 NMI(CO)CB(06/11/2019)