The Commissioner Of Income Tax, Chennai v. M/S.vaishnavi Metals

IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 27.08.2019 The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax,Chennai....Appellant/RespondentVs. M/s.Vaishnavi Metals,116, Egmore High Road,Chennai - 600 008....Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 10.08.2011 made in ITA.No.1103/MDS/2011 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2008-09. Appeal against the order dated 10.05.2011 made inITA.No.71/10-11 on the file of the Commissioner of Income Tax(Appeals)-IX, Chennai -34 for the assessment year 2008-09. Appeal against the order dated 31.12.2010 made inPAN.No./GIR.No.AABFV6899D on the file of the AssistantCommissioner of Income Tax, Business Circle -VII, Chennai -34for the Assessment year 2008-09. For Appellant: Mr.Karthik Ranganathan, SSC assisted by Mr.S.Rajesh, SC For Respondent : Mr.G.BaskarJUDGMENT(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel, assisted by Mr.S.Rajesh, learned StandingCounsel appearing for the appellant/revenue and Mr.G.Baskar,learned counsel appearing for the respondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated10.08.2011 made in ITA.No.1103/MDS/2011 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2008-09. 3.The appeal was admitted on 09.02.2015 on the followingsubstantial question of law :“Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in fixing the grossprofit rate at a percentage lesser than what theassessee himself had offered as gross profit,viz., 2.77% in respect of cash purchases fromunregistered dealers?" 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. Sd/- Assistant Registrar //True Copy// To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax(Appeals)-IV, Chennai -34.3.The Assistant Commissioner of Income Tax, Business Circle-VII, Chennai -34.