The Commissioner Of Income Tax, Chennai v. M/S.m.m.forging Ltd., Chennai-32

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.20 OF 2013 The Commissioner of Income Tax, Chennai ...Appellant/AppellantVsM/s.M.M.Forging Ltd., Chennai-32....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 14.6.2012 made in ITA.No.595/Mds/2012 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2007-08 against the Appellate order passedby the Commissioner of Income Tax (A) Chennai dated 23.12.2011made in CIT(A)-V/ITA. No. 98/2012-2012 against penalty orderpassed by the Assistant Commissioner of Income Tax, CompanyCircle IV(3) Chennai dated 29.09.2011 made in G.I.No/PAN.No. MM-2/ against the order passed by the Income TaxAppellate Tribunal bench “ B” Chennai dated 04.02.2011 made inI.T.A. No. 1554/MDS/2010 against the Assessment order passed bythe Additional Commissioner of Income Tax Company Range IV,Chennai dated 29.12.2009 made in PAN. . For Appellant :Mr.Karthik Ranganathan, SSCFor Respondent:Mr.M.P.Senthilkumar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.Karthik Ranganathan, learned Senior StandingCounsel appearing for the appellant – Revenue andMr.M.P.Senthilkumar, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated14.6.2012 made in ITA.No. 595/Mds/2012 on the file of the IncomeTax Appellate Tribunal, Chennai 'D' Bench for the assessmentyear 2007-08. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 25.4.2013 on the followingsubstantial question of law :“Whether,underthefactsandcircumstances of the case, the Income TaxAppellate Tribunal was correct in deletingthe penalty imposed by the Assessing Officeron the assessee under Section 271(1)(c) ofthe Income Tax Act, 1961 ?” 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 08.8.2019 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 question of law framed is 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(CS-IV) True Copy Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai 2.The Commissioner of Income Tax (A)Chennai.Chennai. 3.The Assistant Commissioner of Income TaxCompany Circle IV(3)Chennai4.The Income Tax Appellate TribunalBench “ B” Chennai EV(CO)SP(13/11/2019)