The Commissioner Of Income Tax,Chennai v. M/S.transworld Garnet India Pvt. Ltd

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.232 of 2015 The Commissioner of Income Tax,Chennai. ...Appellant Vs M/s.Transworld Garnet India Pvt. Ltd.,34/46, M.G.R. Road,Kalashetra Colony, Besant Nagar,Chennai - 600 090. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 24.10.2013 made in ITA.No.1353/MDS/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2006-07 and against the order dated06/03/2013 passed by the Commissioner of Income tax(appeals)Trichy, in ITA.No.46/2009-2010 for the assessment year 2006-2007and as against the order dated 26/06/2009 of the DeputyCommissioner of Income tax, Company Circle III(2) fr theAssessment year 2006-07. For Appellant: Mr.M.Swaminathan, SSC and Ms.V.Pushpa, SCFor Respondent: Mr.Srinath Sridevan We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Ms.V.Pushpa, learned Standing Counsel appearing forthe appellant/revenue and Mr.Srinath Sridevan, learned counselappearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated24.10.2013 made in ITA.No.1353/MDS/2013 on the file of the 1/3 https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal, Chennai 'C' Bench for theassessment year 2006-07. 3.The appeal was admitted on 02.06.2015 on the followingsubstantial question of law : “Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in upholding the orders ofCIT(A) who deleted the penalty imposed underSection 271G of the Income Tax Act especiallywhen the assessee has violated Section 92D readwith Rule 10B(g) of the Income 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 08.8.2019 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/-Asst.Registrar (CO) /true copy/ Sub Asst. Registrar cse 2/3 To1.The Deputy Commissioner of Income Tax,Company Circle III (2)Chennai-34 2.The Income Tax Appellate Tribunal, Chennai 'C' Bench. +1 cc to Mr.M.Swaminathan Advocate sr73566 aa04/11/2019 3/3 TCA.No.232 of 2015