Tca/937/2014 Of Commissioiner Of Income Tax v. M/S Iskraemeco Regent Limited

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.937 and 938 of 2014 Commissioner of Income Tax,Trichy... Appellant in both Appeals-vs- M/s.Iskraemeco Regent Limited,(Now known as Simco Engineering Limited),126, K.Sathanoor Road, Trichy-620 021. .. Respondent in both Appeals APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 28.03.2014, made inI.T.A.Nos.1829 & 1915/Mds/2013 on the file of the Income TaxAppellate Tribunal 'C' Bench, Chennai for the assessment year2004-05, I.T.A.Nos.1829 and 1915/MDS/2013 against theCommissioner of Income Tax(Appeals) No.44, William Road,Cantonment, Tiruchirappali – 620001 in ITA No.18 & 19/12-13/cIT(A)/TRY dated 27/06/2013 in GI No./PA No.AABCI1061P for theAssessment year 2004-2005 against the Assistant Commissioner ofIncome Tax Company, Circle II, Trichy No.4, William Road,Cantonment, Trichy-620001 in PAN No. /Coy.II/TRY dated29/03/2007 for the Assessment year 2004-2005. For Appellant:Mr.M.Swaminathan,(In both Appeals)Senior Standing Counsel &:Ms.V.PushpaStanding Counsel For Respondent:Mr.R.Sankaranarayanan(In both Appeals) https://hcservices.ecourts.gov.in/hcservices/ COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the Revenue under Section 260A of theIncome-tax Act, 1961 are directed against the common order dated28.03.2014, made in I.T.A.Nos.1829 & 1915/Mds/2013 on the fileof the Income Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2004-05. 2.T.C.A.No.937 of 2014 was admitted on 19.01.2016, on thefollowing substantial question of law:- “Whether on the facts and in the circumstancesof the case the Tribunal was right in holding thatpenalty under Section 271AA cannot be levied onthe assessee?” substantial question of law:- “Whether on the facts and in the circumstancesof the case the tribunal was right in holding thatpenalty under Section 271G cannot be levied on the assessee?” 4.Heard Mr.M.Swaminathan, learned Senior Standing Counsel andMs.V.Pushpa, learned Standing Counsel for the appellant – andMr.R.Sankaranarayanan, learned counsel for the respondent. 5.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019,dated 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. 6.In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the event https://hcservices.ecourts.gov.in/hcservices/ the 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 appeals to be heard and decided onmerits. No costs. Sd/-Assistant Registrar(CS-VI)//True copy//Sub Assistant RegistrarabrTo1.The Income Tax Appellate Tribunal 'C' Bench, Chennai.2. The Commissioner of Income tax (Appeals) No.44, Williams Road, Cantonment, Tiruchirapalli -620 0013. The Assistant Commissioner of Income Tax, Company Circle II, Trichy.T.C.A.Nos.937 and 938 of 2014RJI(CO)GMY(01/11/2019)