The Commissioner Of Income Tax,Chennai v. M/S.poorvika Mobiles Pvt. Ltd

In the High Court of Judicature at Madras Dated : 28.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.885 of 2018 The Commissioner of Income Tax,Chennai. ...Appellant Vs M/s.Poorvika Mobiles Pvt. Ltd.,No.30, Arcot Road, Kodambakkam,Chennai - 600 024.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 12.06.2018 made in ITA.No.3097/MDS/2017 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2013-14. Against the order of the Commissioner of Income Tax(Appelas)-3 Room no.215, 2[nd] Floor Aayakar Bhavan, No.121, M.G.Road,Chennai-34 made in ITA No.123/16-17/A-3 dt 30/8/17 for theassessment year 2013-14, against the order of DeputyCommissioner of Income Tax, Corporate Circle 5(2) Room No.415,4[th] Floor, Aayakar Bhavan, 121, Nungambakkam High Road, Chennai-34, made in AAECP9975G/2013-14 dt 26.9.16 for the Assessmentyear 2013-14. For Appellant : Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSC (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.Ravikumar, learned Senior StandingCounsel, and Ms.R.Hemalatha, learned Senior Standing Counselappearing for the appellant/revenue. 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 dated12.06.2018 made in ITA.No.3097/MDS/2017 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2013-14. 3.The appeal was admitted on 04.12.2018 on the followingsubstantial question of law :"i.Whether the Tribunal was right in deleting thepenalty levied under Section 271(1)(c) especiallywhen the assessee had offered additional income byfiling a revised return, which would have escapedtaxation but for the survey action initiated by theDepartment? andii.Whether the Tribunal ought to have applied thedecision of the Apex Court in the case of PrasannaDugar vs. CIT [reported in 70 Taxman.com page 175]wherein the judgment of the Kolkata High Court hasbeen upheld, which had stated that even if theassessee voluntarily disclosed and paid taxsubsequent to search action, penalty levied underSection 271(1)(c) was justified?" 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(CCC) //True Copy//Sub Assistant Registrar cseTo 1.The Commissioner of Income Tax, Chennai. 2.The Income Tax Appellate Tribunal, Chennai 'B' Bench. https://hcservices.ecourts.gov.in/hcservices/ 3.The Commissioner of Income Tax (Appeals)-3 Room No.215, 2[nd] Floor, Aayakar Bhavan, No.121, M.G.Road, Chennai-34. Room No.215, 2[nd] Floor, Aayakar Bhavan, No.121, M.G.Road, Chennai-34. 4.The Deputy Commissioner of Income Tax, Corporate Circle 5(2), Room No.415, 4[th] Floor, Aayakar Bhavan, 121, Nungambakkam High Road, Chennai-34. Corporate Circle 5(2), Room No.415, 4[th] Floor, Aayakar Bhavan, 121, Nungambakkam High Road, Chennai-34. Sd/- Assistant Registrar(CCC) //True Copy//Sub Assistant Registrar cseTo 1.The Commissioner of Income Tax, Chennai. 2.The Income Tax Appellate Tribunal, Chennai 'B' Bench. https://hcservices.ecourts.gov.in/hcservices/ 3.The Commissioner of Income Tax (Appeals)-3 Room No.215, 2[nd] Floor, Aayakar Bhavan, No.121, M.G.Road, Chennai-34. Room No.215, 2[nd] Floor, Aayakar Bhavan, No.121, M.G.Road, Chennai-34. 4.The Deputy Commissioner of Income Tax, Corporate Circle 5(2), Room No.415, 4[th] Floor, Aayakar Bhavan, 121, Nungambakkam High Road, Chennai-34. Corporate Circle 5(2), Room No.415, 4[th] Floor, Aayakar Bhavan, 121, Nungambakkam High Road, Chennai-34. 5.The Assistant Registrar, Income Tax Appellate Tribunal, IIIrd Floor, Rajaji Bhavan, Besant Nagar, Chennai-90. Income Tax Appellate Tribunal, IIIrd Floor, Rajaji Bhavan, Besant Nagar, Chennai-90. +1cc to Mr.T.Ravikumar, Advocate SR.73655TCA.No.885 of 2018SKV(CO)CB(05/11/2019)