Tca/885/2014 Of Commissioner Of Income Tax v. M/S Rv Steels Pvt Ltd

In the High Court of Judicature at Madras Dated : 18.06.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.885 of 2014 Commissioner of Income Tax,Central Circle III,Chennai. ...Appellant -vs-M/s.RV Steels Private Limited,4/2, Second Street,B.N.Road, T.Nagar,Chennai-600 017.PAN: ...Respondent Prayer: APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 31.05.2011 made in M.P.No.43/Mds/2011 inI.T.A.No.2358/Mds/2007 on the file of the Income Tax AppellateTribunal 'D' Bench, Chennai for the assessment year 2004-05,preferred aginst the order of the, Income Tax Appellate TribunalB Bench, Chennai, dated 18.7.2008 made in ITAT NO.2358/MDS/07,against the order dated 27.8.2007 made in CIT(A)/CHE/401/06-07,by the Commissioner of Income Tax (Appeals)-II, Chennai, againstthe order dated 26.12.2006, preferred by the AssistantCommissioner of Income Tax, Central Circle III(3)(i/c), Chennai-34. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel &Ms.K.G.Usha Rani,Standing CounselFor Respondent:Mr.R.Sivaraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel appearing https://hcservices.ecourts.gov.in/hcservices/ for the appellant-Revenue and Mr.R.Sivaraman, learned counselfor the respondent-assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated31.05.2011 made in M.P.No.43/Mds/2011 in I.T.A.No.2358/Mds/2007on the file of the Income Tax Appellate Tribunal 'D' Bench,Chennai for the assessment year 2004-05. 3. The appeal was admitted on 12.01.2015 on the followingsubstantial questions of law:- “1) whether on the facts and in thecircumstances of the case the Income TaxAppellate Tribunal was correct in holdingthat the revenue raised facts andobservations in the miscellaneous petitionwhich were not rectifiable u/s.254 (2) ofthe Income Tax Act despite the fact that allwere based upon the findings out ofextensive investigation done by theassessing officer?2) Whether on the facts and in thecircumstances of the case the Income TaxAppellate Tribunal was right in holding thatthe addition made under Section 68 of theIncome Tax Act, 1961 being unexplained cashcredit amounting to Rs.1,95,93,657/- was tobe deleted.3) Whether on the facts and in thecircumstances of the case the Income TaxAppellate Tribunal was right in presumingthat the assessee provided complete namesand addresses of the parties extending cashcredits when the investigation of theassessing officer showed that they were allnon-existent? 4) Whether on the facts and in thecircumstances of the case the Income TaxAppellate Tribunal was correct in presumingthat the case credits from M/s.DivyaTraders, M/s.Divya cements and M/s.KalinIndustries were genuine only because theywere received through brokers and throughcheques despite the fact that they werefound to be bogus parties duringinvestigation by the assessing officer?” 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.17/2019 dated 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. 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.17/2019 dated 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. -s/d- Assistant Registrar True Copy Sub-Assistant RegistrarTo 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2.The Income Tax Appellate Tribunal, 'B' Bench, Chennai. 3.The Commissioner Of Income Tax(Appeals)ii, Chennai. 4.The Assistant Commissioner of Income Tax, Central Circle III(3)(i/c), Chennai-34. TCA.No.885 of 2014 SSV(CO)RV(16/09/2020)