The Commissioner Of Income Tax, Central Circle, Chennai v. M/S.sri Renga Enterprises, Trichy-2

In the High Court of Judicature at Madras Dated : 21.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax,Central Circle, Chennai...Appellant/Appellant VsM/s.Sri Renga Enterprises, Trichy-2....Respondent /Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 23.12.2011 made in ITA.Nos.505 to507 and 1289/ Mds/2010 on the file of the Income Tax AppellateTribunal, Chennai 'A' Bench respectively for the assessmentyears from 2004-05 to 2007-08, against the order dated12/04/2010 made in ITA.NO.186/09-10 on the file of theCommissioner of Income Tax(Appeals)-II, Chennai 34 for theAssessment year 2007-2008 and against the order dated 07/01/2010made in ITA.NOS.124 to 126/08-09 on the file of the Commissionerof Income Tax(Appeals)-II, Chennai 600 034 for the Assessmentyear 2004-05, 2005-06 & 2006-07 and against the order dated31/12/2009 made in PAN/GIR.NO. on the file of theAssistant Commissioner of Income Tax, Central Circle II(2),Chennai 34 for the Assessment year 2007-08 and against the orderdated 24/12/2008 made in PAN/GIR.NO. on the file ofthe Deputy Commissioner of Income Tax, Central Circle II(2),Chennai 34 for the Assessment year 2006-07 and against the orderdated 24/12/2008 made in PAN/GIR.NO. on the file ofthe Deputy Commissioner of Income Tax, Central Circle II(2),Chennai 34 for the Assessment year 2005-06 and against theorder dated 24/12/2008 made in PAN/GIR.NO. on the fileof the Deputy Commissioner of Income Tax, Central Circle II(2),Chennai. For Appellant :Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SCFor Respondent:Mr.A.S.Sriraman 1/3 COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 23.12.2011 made in ITA.Nos.505 to 507 and 1289/Mds/2010 onthe file of the Income Tax Appellate Tribunal, Chennai 'A' Benchrespectively for the assessment years from 2004-05 to 2007-08. 3. The appeals were admitted on 17.4.2014 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in coming tothe conclusion that the books of accountsthat is the purchase account were notrejected by the Assessing Officer hencetinkering of the same is not permissible ?andii. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in deleting the addition ofRs.45,68,346/-, which is 8% of the totalwastages sustained by the Assessing Officerwhen compared to the claim of wastage by theassessee @ 32% for the assessment year 2007-08 ?” 4. 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.17/2019dated 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 the respectivecases is less than the threshold limit. 5. 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 2/3 4. 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.17/2019dated 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 the respectivecases is less than the threshold limit. 5. 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 2/3 the tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax(Appeals)II, Chennai 34 3.The Assistant Commissioner of Income Tax,Central Circle II(2), Chennai 34. 4.The Deputy Commissioner of Income Tax,Central Circle II(2),Chennai 34 +1cc to Mr.S.Sridhar, Advocate sr.71121 +1cc to Mr.T.R.Senthilkumar, Advocate sr.71732 TCA.Nos.945 to 948 of 2013sr(co)nr 14/11/2019 3/3