Commissioner Of Income Tax,Madurai v. M/S.universal Foods,Eraviputhur Kadai,Kattathurai Post,Kanyakumari District

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.577 of 2013 Commissioner of Income Tax,Madurai... Appellant/Appellant -vs- M/s.Universal Foods,Eraviputhur Kadai,Kattathurai Post,Kanyakumari District.PAN: .. Respondent/Respondent Appeal under Section 260A of the Income-tax Act, 1961,against the order dated 22.07.2011, on the file of the Income-taxAppellateTribunalBench'A',Chennai,inI.T.A.No.764/Mds/2011 for the assessment year 2001-02 againstthe order of the Commissioner of Income Tax (Appeals-I) Maduraidated 10/01/2011 ITA No.0017/09-10 GI No/Pan No. forthe Assessment year 2001-02 and against the order of theAssistant Commissioner of Income Tax for Circle -I, TuticorinG.I No.U302/TTNl dated 14/06/2005 for the Assessment year 2001-02 respectively. For Appellant:Ms.S.Premalatha,Junior Standing Counsel :for Mr.M.Swaminathan,Senior Standing Counsel This appeal by the appellant/Revenue filed under Section 260Aof the Income-tax Act, 1961, is directed against the order dated22.07.2011, passed by the Income-tax Appellate Tribunal Bench'A', Chennai, in I.T.A.No.764/Mds/2011 for the assessment year2001-02. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted, on 10.04.2014, on thefollowing substantial questions of law:-“(i) Whether on the facts and in thecircumstances of the case, the Income Tax Tribunalwas right in upholding the order of CIT(A) andholding that rectification order under Section 154can be made of the mistake which is oblivious andpatent and not of a debatable issue or involvingstatutory interpretation? (ii) Whether on the facts and in thecircumstances of the case, the Income Tax Tribunalwas right in not considering Explanation (b) toSection 80HHC(4B) which deals with export turnoverbut does not include freight or insuranceattributable to transport of goods or mercantilebeyond the customs station and as such thequestion of debatable issue do not arise?” 3.Heard Ms.S.Premalatha, learned Senior Standing Counsel forMr.M.Swaminathan, learned Senior Standing Counsel for theappellant. 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. Sd/-Assistant Registrar(Insp.cell) //True copy// abr Sub Assistant Registrar https://hcservices.ecourts.gov.in/hcservices/ To 1.The Assistant Commissioner of Income-tax, Circle-I, Tuticorin. Circle-I, Tuticorin. 2.The Commissioner of Income-tax (Appeals)-I, Madurai. Madurai. 3.The Income-tax Appellate Tribunal Bench 'A', Chennai. +1cc to Mr.M.Swaminathan, Advocate SR.No.72341 T.C.A.No.577 of 2013 AD(CO) GMY(17/10/2019)