Principal Commissioner Of Income Tax I v. M/S.kalpana Medical Center Private Ltd.,4/5-C, Kalpana Complex,Kavundampalayam, Mettupalayam,Coimbatore-641 030

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Principal Commissioner of Income Tax I,No.63, Race Course Road,Coimbatore-641 018... Appellant in all Appeals -vs- M/s.Kalpana Medical Center Private Ltd.,4/5-C, Kalpana Complex,Kavundampalayam, Mettupalayam,Coimbatore-641 030.PAN: AAC CK 7724 L.. Respondent in all Appeals Appeals under Section 260A of the Income-tax Act, 1961,against the common order dated 09.11.2016, made inI.T.A.Nos.2847, 2848/Mds/2014 and 347/Mds/2015 respectively onthe file of the Income Tax Appellate Tribunal 'A' Bench, Chennaifor the assessment years 2007-08, 2008-09 and 2009-10respectively against the Order dated 10.09.2014 made in ITANo.210/13-14 and 209/13-14 for the Assessment Year 2007-08 and2008- 09 and dated 16.01.2015 made In ITA No.208/13-14 for theAssessment Year 2009-10 respectively on the file of theCommissioner of Income Tax, (Appeals-I, Coimbatore against theassessment Order dated 04.03.2013 by the Assistant Commissionerof Income Tax Company Circle-IV (1), Coimbatore , against thePAN No.AACCK 7724L. These appeals filed by the Revenue under Section 260A of theIncome-tax Act, 1961 are directed against the common order dated https://hcservices.ecourts.gov.in/hcservices/ 09.11.2016, made in I.T.A.Nos.2847, 2848/Mds/2014 and347/Mds/2015 on the file of the Income Tax Appellate Tribunal'A' Bench, Chennai for the assessment years 2007-08, 2008-09 and2009-10 respectively. 2.The appeals have been admitted on 01.08.2017, on thefollowing substantial questions of law:-“(i) Whether the sworn statement recorded fromthe assessee during the course of survey actionunder Section 133A of the Income Tax Act, 1961 canbe the basis for making additions in the re-assessment proceedings in the light of Explanation2 (b) appended to Section 147 of the Income TaxAct, 1961? and(ii) Whether the Appellate Tribunal erred inlaw in holding that the re-opening of assessmentfor the Assessment years 2007-08 to 2009-10 werebad in law when the reason to believe that therewas escapement of income chargeable to tax in theyears in question was based on records found inthe course of survey action under Section 133A ofthe Income Tax Act, 1961?”3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Mr.N.V.Balaji, learned counsel for therespondent. 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.abr Sd/- Assistant Registrar //True Copy// To 1.The Principal Commissioner of Income Tax 1, No.63 Race Course Road, Coimbatore -641 018. 2. The Income Tax Appellate Tribunal 'A' Bench, Chennai. Chennai. 3.The Commissioner of Income Tax, (Appeals-I), Coimbatore Coimbatore 4. The Assistant Commissioner of Income Tax, Company Circle-IV (1), Coimbatore +1cc to Mr.N.V.Balaji, Advocate, SR.No.76081 +1cc to Mr.T.R.Senthil Kumar, Advocate, SR.No.75128 T.C.A.Nos.397 to 399 of 2017 Kak(11/11/2019)