The Commissioner Of Income Tax,Chennai v. M/S.indian Additives Ltd.,Express Highway,Manali, Chennai – 600 068

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax,Chennai. ... Appellant Vs. M/s.Indian Additives Ltd.,Express Highway,Manali, Chennai – 600 068.... Respondent Tax Case Appeal preferred under Section 260A of the IncomeTax Act, 1961, against the order of the Income Tax AppellateTribunal,Chennai,“D”Bench,dated05.06.2013 inI.T.A.No.511/Mds/2013, Assessment Year 2006-07 passed againstthe order of the Commissioner of Income Tax (Appeals-I)Coimbatore Commissioner of Income Tax, Company Circle II(3)Chennai dated 29.06.2010 in PAN No. dated 11.01.2013in Appeal No. 65/2010-2011 preferred against the order of theDeputy Commissioner office at Chennai. For Appellant : Mr.Karthik Ranganathan Standing Counsel We have heard Mr.Karthik Ranganathan, learned StandingCounsel for the appellant/Revenue and Ms.Sri NiranjiniSrinivasan, 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 05.06.2013 made in I.T.A.No.511/Mds/2013 on the https://hcservices.ecourts.gov.in/hcservices/ file of the Income Tax Appellate Tribunal, Chennai, “D” Bench(for brevity, the Tribunal) for the Assessment Year 2006-07. 3.The appeal was admitted on 16.04.2014 on the followingsubstantial question of law: “As to whether the Income Tax AppellateTribunal was right in interpretation of Section271AA of the Income Tax Act, 1961 as providingfor the discretion in the matter of levy ofpenalty, particularly when Section 92D of theIncome Tax Act mandates the keeping andmaintaining of information and document by suchperson,whoenteredintointernationaltransaction in accordance with Rule 10B of theIncome Tax Rules” 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 08.08.2019 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case is lessthan the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe 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. s/d- Assistant Registrar True Copy Sub-Assistant RegistrarmknTo 1.The Income Tax Appellate Tribunal, Chennai, “D” Bench 2.The Commissioner of Income Tax,(Appeals-I), Coimbatore camp atChennai 3.The Assistant Commissioner of Income TaxCompany Circle 11(3) New Block, NungambakkamChennai 34.Company Circle 11(3) New Block, NungambakkamChennai 34. +1 CC to Mr.G. Baskar, Advocate sr 11461. T.C.A.No.9 of 2014 GMI(CO)SP(17/03/2021)