Tca/177/2011 Of Commissioiner Of Income Tax Iv v. Mr.m.n.rajaraman

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.177 OF 2011 The Commissioner of Income Tax – IV,Chennai. .... Appellant/Respondent -vs- Mr.M.N.Rajaraman6, Vidyodaya First Cross St.T.Nagar, Chennai – 600 017....Respondent/Appellant Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalChennai 'B' Bench, dated 23.04.2010 in ITA No.616/Mds/2007, forthe Assessment year 1999-00. against the common order dated23.01.2007 made in ITA.No.75 & 77 to 81/06-07 on the file ofCommissioner of Income Tax(Appeals)-I, Chennai-34 against theorder dated 10.08.2006 made in F.No.CHE/CEN-1(3)/MNR/(SRM) 2006-07 on the file of Assistant Commissioner of Income Tax, CentralCircle 1(3) Old No.108, Chennai-34. For Appellant:Mr.T.R.Senthil KumarFor Respondent :Mr.Quadir Hoseyn This appeal by the appellant/Revenue is directedagainst the order of the Income Tax Appellate Tribunal Chennai'B' Bench, dated 23.04.2010 in ITA No.616/Mds/2007, for theAssessment year 1999-00.2.Heard Mr.T.R.Senthil Kumar, learned Counsel for theappellant/Revenue and Mr.Quadir Hoseyn, learned Counsel for theRespondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 3.This Appeal has been admitted on 12.07.2011, on thefollowing Substantial Question of Law: "(i)Whether on the facts and circumstancesof the case, the Income Tax Appellate Tribunalwas right in quashing the order of theAssessing Officer levying a penalty of Rs.18,33,458/- u/sec.271(1)(c) of the Income TaxAct?” 4.We have perused the order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2008, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Question of Law, framed forconsideration, is left open. No costs. The Revenue is atliberty to seek for restoration of appeal if at a later point oftime, it is found that the tax effect is above the thresholdlimit or to fall under the exceptional clauses mentioned in theCircular. Sd/- Assistant Registrar(CO) mrmTo //True Copy// Sub Assistant Registrar 1.The Income Tax Appellate Tribunal Madras 'B' Bench. 2.O/o The Commissioner of Income Tax, (Appeals-I), Chennai-34.3.The Assistant Commissioner of Income Tax, Central Circle-1(3), Old No.108, MG Road, Chennai-34. +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No.76073 +1cc to Mr.Quadir Hoseyn, Advocate, S.R.No.76001 VGII(Co)CS/11/12/2018 https://hcservices.ecourts.gov.in/hcservices/