Commissioner Of Income Tax v. M/S.craftsman Automation (P) Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 17.06.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.1120 of 2015 Commissioner of Income Tax,No.63, Race Course Road,Coimbatore....Appellant/Respondent Vs M/s.Craftsman Automation (P) Ltd.,15, LML Colony,Ammankulam Road,Coimbatore-641 037.PAN: AAB CC 2461 K...Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 17.04.2015 made in ITA No.2191/Mds/2010 on thefile of the Income Tax Appellate Tribunal 'A' Bench, Chennai forthe assessment year 2006-07, against the order dated 31.3.2009made in PAN.No. /2006-07 on the Additional Commissionerof Income Tax, Range IV, Coimbatore and the order dated 29-11-2010, made in IT Appeal No.13c/200-10. On the file ofCommissioner of Income Tax,(Appeals)-I, Coimbatore. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counselassisted by Ms.K.G.Usha Rani,Junior Standing Counsel Respondent :Mr.A.S.SriramanJudgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usha Rani, learned Junior StandingCounsel appearing for the appellant-Revenue and Mr.A.S.Sriraman,learned counsel for the respondent-assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated17.04.2015 made in ITA No.2191/Mds/2010 on the file of theIncome Tax Appellate Tribunal 'A' Bench, Chennai for theassessment year 2006-07. 3. The appeal was admitted on 25.11.2015 on the followingsubstantial questions of law :“1. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in cancelling penaltylevied under Section 271(1)(c) of the IncomeTax Act, when the assessee furnishedinaccurate particulars and claimed deductionunder Section 80JJAA when the assessee isnot eligible for the same?2. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in law in cancellingpenalty levied under Section 271(1)(c) whenthe Appellate Tribunal in its quantum orderconfirmed that the assessee is not eligiblefor deduction under Section 80JJAA of theIncome Tax Act?” 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.17/2019dated 08.8.2019 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. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar 2 abr To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. 'A' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)1, Coimbatore. Coimbatore. 3.The Additional Commissioner of Income Tax, Range IV, Coimbatore. Range IV, Coimbatore. TCA.No.1120 of 2015RLD(CO)CB(25/09/2020) 3