Tca/873/2014 Of Commissioner Of Income Tax v. A. Gnanpaul

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R. HEMALATHA Commissioner of Income Tax,Coimbatore ... Appellant Shri A. Gnanpaul,Prop : M/s.Annai Fathima Leathers,No.101A, Rmamurthy Nagar,Erode – 638 303. ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “C” Bench, dated 07.03.2014 in I.T.A.No.1258/Mds/2013,Assessment Year 2007-08, as against the order of theCommissioner of Income Tax(Appeals)-1, Coimbatore dated05.03.2013 made in Appeal.No.193 of 2010-11 for the assessmentyears 2007-08, as against the order of the Income Tax Officer,Ward-I(3), Erode dated 30.12.2010 made in AFFDG3540K U/s.143(3)r.w.s.147 of Income Tax Act. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Mrs.K.G.Usha Rani, learned Standing Counsel for theappellant/Revenue and Mr.R.Kumar, learned counsel for therespondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 07.03.2014 made in I.T.A.No.1258/Mds/2013 on thefile of the Income Tax Appellate Tribunal, Chennai, “C” Bench(for brevity, the Tribunal) for the Assessment Year 2007-08. 3.The appeal was admitted on 17.11.2014 on the followingsubstantial questions of law: “1.Whether under the facts and circumstancesof the case, the Income Tax Tribunal was right inupholding that the order of the Commissioner ofIncome Tax (Appeals) deleting the addition madeby the assessing officer in respect of creditorswhich were not satisfactorily explained by theassessee? 2.Whether based on the material availablebefore the Income Tax Appellate Tribunal, itcould have come to the conclusion that thecreditors whose balances were added by theassessing officer were satisfactorily explainedby the assessee? 3.Whether on the facts and in thecircumstances of the case, the Tribunal wasright in upholding the order of the Commissionerof Income Tax (Appeals) deleting additions,merely by relying on its order in another casewhere the addition with respect to same creditorswere deleted?” 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 08.08.2019 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 CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the threshold https://hcservices.ecourts.gov.in/hcservices/ limit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant Registrar mkn To 1. The Income Tax Appellate Tribunal, Chennai, “C” Bench 2. The Commissioner of Income Tax (Appeals)-I, Coimbatore. Coimbatore. 3. The Income Tax Officer, Ward-I(3), Erode. +1cc to M/s.T.R.Senthil Kumar, Advocate, S.R.No.31295 T.C.A.No.873 of 2014 GP(CO)BE(28/07/2021)