The Commissioner Of Income Tax, Salem v. M/S.sri Sakthimyil Finance, Namakkal

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.139 of 2011 The Commissioner of Income Tax, Salem...Appellant/AppellantVsM/s.Sri Sakthimyil Finance, Namakkal...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 20.2.2007 made in ITA.No.1967/Mds/2003 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 1997-98. Against the order of the Commissioner of Income Tax(Appeals), Salem made in ITA.No. 161/2000-01, order dated31.01.2003 against the order of the Deputy Commissioner ofInccome Tax, Circle I (), Salem-7, made in PAN/GIR.No.S-1362,order dated 31.03.2000 for the assessment year 1997-98. For Appellant:Ms.S.Premalatha, SC For Respondent:Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Ms.S.Premalatha, learned Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated20.2.2007 made in ITA.No. 1967/Mds/2003 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for theassessment year 1997-98. 3. The appeal was admitted on 05.4.2011 on the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ “i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal is right in holding thatpenalty was not leviable under Section 271(1)(c) to an extent of Rs.6,70,000/- ? and ii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal is right in law in notconsidering the fact that there cannot beany estoppel against the Statute and penaltyis leviable when there is concealment ofincome ?” 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 questions of law framed are 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//Sub Assistant Registrar RS To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. Chennai 'D' Bench. 2.The Commissioner of Income Tax Appeals II, Chennai 34. Chennai 34. 3.The Deputy Commissioner of Income Tax Central Circle II (I),Central Circle II (I), Chennai 34. 4.The Commissioner of Income Tax, Salem. Salem. +1cc to Mr.S.Sridhar, Advocate, S.R.No. 70614 +1cc to Mr.M.Swaminathan, Advocate, S.R.No. 70579 TCA.No.139 of 2011 RR(CO)GN(14/12/2020)