Principal Commissioner Of Income Tax 2 v. M/S.k.p.s.oil Mills

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.08.2019CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Principal Commissioner of Income Tax 2,No.63, Race Course Road,Coimbatore... Appellant -vs- M/s.K.P.S.Oil Mills,No.117, Bhavani Road,Erode-638 004.PAN: AAF FK 2695 A.. Respondent Appeal under Section 260A of the Income-tax Act, 1961,againsttheorderdated09.06.2016,madeinI.T.A.No.2326/Mds/2015 on the file of the Income Tax AppellateTribunal 'B' Bench, Chennai for the assessment year 2012-13against the Order of the Commissioner of Income Tax (Appeals)-3Coimbatore dated 18.11.2015 and made in ITA No.581/14-15 for theAssessment Year 2012- 13 against the Order of the AssistantCommissioner of Income Tax Circle-I, Erode, dated 13.02.2015and made in PA No.AAFFK2695 A for the Assessment Year 2012 -13. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel:Assisted by Ms.K.G.Usharani,Standing CounselJUDGMENT(Delivered by T.S.Sivagnanam, J.) This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated09.06.2016, made in I.T.A.No.2326/Mds/2015 on the file of theIncome Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2012-13. 2.The appeal has been admitted on 13.02.2017, on thefollowing substantial question of law:-“Whether on the facts and circumstances of thecase, the Appellate Tribunal rendered a perverse https://hcservices.ecourts.gov.in/hcservices/ order by observing that the Assessing Officer feltthat the entire transaction was only anaccommodation entry he have disallowed the entireclaim of loss without appreciating the fact thatthe Assessing Officer only disallowed the lossesarising out of local sales and not that of highseas transaction by the LC receipts as the LCcharges relating to import of oil was not adisallowable one?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned 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 question of law framed is 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. To 1.The Income Tax Appellate Tribunal 'B' Bench,Chennai. 2.The Principal Commissioner of Income Tax No.63, Race Course Road, Coimbatore 3. The Commissioner of Income tax,(Appeals) -3, Coimbatore 4. The Assistant Commissioner of Income Tax Circle-I, Erode. +1cc to Mr.T.R.Senthil Kumar, Advocate, SR.No.75135/19+1cc to Mr.N.V.Balaji, Advocate, SR.No.76077/19 T.C.A.No.66 of 2017 Kak(05/11/2019)