Tca/165/2009 Of Commissioner Of Income Tax v. M/S Chettinad Stud @

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 09.11.2018 THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR. JUSTICE N.SATHISHKUMAR Tax Case Appeal No.165 of 2009 The Commissioner of Income TaxChennai. .... Appellant -vs- M/s.Chettinad Stud & Agricultural Farm,'Chettinad House' R.A.Puram, Chennai....Respondent Tax Case Appeal filed under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal Madras 'A' Bench, dated 06.06.2008 inITA No.2293/Mds/2007, for the Assessment year 1998-99Appeal against the order of the commissioner of Income Tax(Appeals) vi,121,Mahatma Gandhi road, Chennai 34 in ITANO.4/2006-07 dated 15.06.2007 in PAN GINO. forthe year of 1998-1999 against the Joint commissioner ofincome tax (OSa)Circle I, Chennai 34 in PA/GI MO 02133GCfor the Assessment year 1998-1999. For Appellant:Mr.Karthik RanganathanFor Respondent:Mr.A.S.Sriraman This appeal by the appellant/Revenue is directedagainst the order of the Income Tax Appellate TribunalMadras 'A' Bench, dated 06.06.2008 in ITA No.2293/Mds/2007,for the Assessment year 1998-99. 2.Heard Mr.Karthik Ranganathan, learned Counsel forthe appellant/Revenue and Mr.A.S.Sriraman, learned Counselfor the Respondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 3.This Appeal has been admitted on 16.03.2009, onthe following Substantial Questions of Law: "(i)Whether on the facts andcircumstances of the case, the Tribunalwas right in law in holding that the re-assessment could not be validly initiatedon the basis of information from theDepartmentofRevenueIntelligenceregarding customs under valuation? (ii)Whether,onthefactsandcircumstances of the case, the Tribunalwas right in holding that the re-assessment is not valid, when it was doneon the basis of the order of the Customsand Excise Settlement Commission beforewhich the assessee has made a full andtrue disclosure of the amount? ” 4.We have perused the order of Assessment as well asthe Order passed by the Commissioner of Income Tax and wefind that the tax effect in this appeal is lesser than thethreshold limit mentioned in Circular No.3 of 2018, dated11.07.2018, issued by the Central Board of Direct Taxes,which fixes the monetary limit as Rs.50,00,000/- for theDepartment to pursue the matter. Furthermore, the Revenuehas not been able to point out any distinguishing features,by which the Circular No.3 of 2018, dated 11.07.2018,cannot be applied. 5.Thus, for the above reasons, the Revenue cannotpursue this Appeal in view of the low tax effect. Hence,the Appeal is dismissed and the Substantial Question ofLaw, framed for consideration, is left open. No costs.The Revenue is at liberty to seek for restoration of appealif at a later point of time, it is found that the taxeffect is above the threshold limit or to fall under theexceptional clauses mentioned in the Circular. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar mrm To 1.The Income Tax Appellate Tribunal Madras 'A' Bench. 2.The commissioner of Income Tax(Appeals) vi,121,MahatmaGandhi road, Chennai 34Gandhi road, Chennai 34 3.The Joint commissioner of income tax (OSA)Circle I,Chennai 34Chennai 34 +1cc to Mr.A.S.Sriraman, Advocate SR.No. 77085 T.C.A.No.165 of 2009 ASK(04/12/2018)