Tax-I, Chennai v. M/S.uvw Apparels (P) Ltd., Chennai-17

In the High Court of Judicature at MadrasDated : 20.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.253 of 2011 Commissioner of Income Tax-I, Chennai ...AppellantVsM/s.UVW Apparels (P) Ltd.,Chennai-17...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 23.3.2009 made in ITA.No.1372/Mds/2008 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2001-02 against the appellate order of theCommissioner of Income Tax (Appeals) VIII, Chennai dated31.03.2008 and made in I.T.A.No.282/2007-08 for the Assessmentyear 2001-2002; and against the proceedings of the Income -TaxOfficer, Company Ward III(1), Chennai, dated 24.11.2006 and madein CHE/Com.CIR III(3)/UVWAPL/01-02/AAACU1434B(33009-U) for theAssessment year 2001-02. For Appellant:Mr.M.Swaminathan, SSC assisted byMs.V.Pushpa, SCFor Respondent :Mr.R.Venkatanarayanan forM/s.Subbaraya Aiyer Padmanabhan Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, assisted by Ms.V.Pushpa, learned Standing Counselappearing for the appellant – Revenue and Mr.R.Venkatanarayanan,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated23.3.2009 made in ITA.No. 1372/Mds/2008 on the file of theIncome Tax Appellate Tribunal, Chennai 'C' Bench for theassessment year 2001-02. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 02.8.2011 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe Assessing Officer could not rectify theintimation under Section 143(1) wherein thecommission received of Rs.40,57,920/- wasomitted to be reduced from the profits ofbusiness while computing the deduction underSection 80HHC read with Explanation (baa)thereto, without appreciating the amendmentunder Section 154(1)(b) made with effectfrom 01.6.1999 ? andii. Without prejudice to the precedingquestion, whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in notupholding the order of the Assessing Officerunder Section 154 at least to the extent ofthe excess claim for deduction under Section80HHC made in the return, as admitted in therevised computation by the assessee in thereply to the notice under Section 154 ?” 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. No costs. Sd/- Assistant Registrar //True Copy// To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax -I,Chennai. 3.The Commissioner of Income Tax (Appeals) – VIII, Chennai. 4.The Income Tax Officer, Company Ward III(1), Chennai. +1 cc to M/s.M.Swaminathan,Advocate Sr.No. 70577+1 cc to Mr.Subbaraya Aiyer, Advocate Sr.No.71042 AKM/27.09.19/2P-7C/ TCA.No.253 of 2011