Tca/1094/2009 Of Income Tax Officer v. Sri Ambika Jewellers

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case (Appeal) Nos.1094 and 1095 of 2009 Income Tax Officer,Ward II(2), Madurai. ...Appellant in both the Appeals-vs- Sri Ambika Jewellers,106, South Aavani Moola Street,Madurai-625 001.... Respondent in both the Appeals Tax Case Appeals filed under Section 260A of the Income TaxAct, 1961 against the common order of the Income Tax AppellateTribunal 'B' Bench, Chennai, dated 18.08.2000 in I.T.A.Nos.1683and 1684/Mds/92 for the assessment years 1985-86 and 1986-87. Against the order of the Commissioner of Income Tax Appeal,Madurai dated 24.04.1992 in I.T.A.Nos.86/90-91 AY 85-86, 87/90-91 AY 86-87, 85/90-91 AY 87-88 in P.A. No. 49-003/FV 7953. Against the order of the Deputy Commissioner of Income TaxSpecial Range I, Madurai dated 28.03.1989 in P.A.N. 49-003-FT-7993/1986-87.For Appellant :Mr.M.Swaminathan,(in both the Appeals)Senior Standing Counsel:and Ms.V.Pushpa,Junior Standing Counsel These appeals, by the appellant/Revenue, are directedagainst the common order dated 18.08.2000, passed by the IncomeTax Appellate Tribunal Chennai 'B' Bench, in I.T.A.Nos.1683 and1684/Mds/92 for the assessment years 1985-86 and 1986-87. https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mr.M.Swaminathan, learned Senior Standing Counseland Ms.V.Pushpa, learned Junior Standing Counsel for the Revenue. 3.The above appeals have been admitted, on 03.11.2009, onthe following substantial question of law:-“Whether on the facts and circumstances ofthe case, the Tribunal was right in law incancelling the penalty under Section 271(1)(c)especially when the assessee had agreed foradditional arising out of concealment of income?” 4.We have perused the orders of assessment as well as theorder passed by the Commissioner of Income Tax (Appeals) and wefind that the tax effect in these appeals is lesser than thethreshold limit mentioned in Circular No.3 of 2018, dated11.07.2018, issued by the Central Board of Direct Taxes, whichfixes the monetary limit as Rs.50,00,000/- for the Department topursue the matter. Furthermore, the Revenue has not been ableto point out any distinguishing features, by which the CircularNo.3 of 2018, dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethese appeals in view of the low tax effect. Hence, the appealsare dismissed and the substantial question of law, framed forconsideration, is left open. The Revenue is at liberty to seekfor restoration of appeals if at a later point of time, it isfound that the tax effect is above the threshold limit or tofall under the exceptional clauses mentioned in the Circular.No costs. -s/d- Assistant Registrar(CS-IX) True Copy Sub-Assistant Registrar abr To 1.The Income Tax Appellate Tribunal Chennai 'B' Bench. Rajaji Bhavan, Besant Nagar, Chennai. Rajaji Bhavan, Besant Nagar, Chennai. 2. The Commissioner of Income Tax Appeals I, Madurai. Appeals I, Madurai. 3. The Deputy Commissioner of Income Tax Special Range I, Madurai. Special Range I, Madurai. T.C.(A) Nos.1094 and 1095 of 2009 MG(CO)SP(07/12/2018)