The Commissioner Of Income Tax, Chennai v. M/S.integrated Enterprises Ltd., 5-A, Kences Towers

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax,Chennai.... Appellant/AppellantVs. M/s.Integrated Enterprises Ltd.,5-A, Kences Towers,1, Ramakrishna Street, T.Nagar,Chennai – 600 017.... Respondent/Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “A” Bench, dated 20.09.2013 in I.TA.No.1836/Mds/2011,Assessment Year 2001-02 and this Appeal preferred against theCommissioner of Income Tax (Appeals)II Chennai 34 order dated26.08.2011 made in I.T.A. No. 550/2008-2009/AIII for theassessment year 2001-2002 and against the Assistant Commissionerof Income Tax Company Circle II(3) Chennai 34 order dated26.12.2008 made in G.I. No./PA No. AAAC11509F for the Assessmentyear 2001-2002. For Appellant : Mr.Karthik Ranganathan Standing Counsel For Respondent : Mr.M.Kaushik for Mr.S.Sridhar (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned StandingCounsel for the appellant/Revenue and Mr.M.Kaushik forMr.S.Sridhar, learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 20.09.2013 made in I.TA.No.1836/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai, “A” Bench(for brevity, the Tribunal) for the Assessment Year 2001-02. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 03.12.2014 on the followingsubstantial questions of law:“1)Whether the Tribunal was right inupholding the order of the Commissioner of IncomeTax (Appeals) in holding that the reopening ofassessment made under Section 147 of the IncomeTax Act and quashing the reopening of assessmentwhich was based on the change of opinion ? 2.Whether the finding of the Tribunal wasproper, especially when there was a differencebetween the amount admitted in the profit andloss account and the receipt shown as per the TDScertificate issued by the deductor, which clearlyproves that there was an escapement of incomeand, therefore, reopening of assessment wasproper ?” 4.The learned Standing Counsel for the appellant submitsthat the above appeal is not pursued by the Revenue on accountof the Low Tax Effect in terms of Circular No.17/2019 dated08.08.2019 issued by the Central Board of Direct Taxes. By thesaid 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 thresholdlimit 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. mknTo 1.The Income Tax Appellate Tribunal, Chennai, “A” Bench 2.The Commissioner of Income Tax, Chennai. Chennai. https://hcservices.ecourts.gov.in/hcservices/ 3.The Assistant Commissioner of Income TaxCompany Circle II(S)Chennai 34.Company Circle II(S)Chennai 34. +1 CC to Mr.S.Sridhar, Advocate sr 12329. T.C.A.No.42 of 2014 KJ(CO) SP(18/03/2021)