The Commissioner Of Income Tax,Chennai v. Shri.m.shanmughamno

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 09.08.2021 CORAM :THE HON'BLE MR. JUSTICE T.S. SIVAGNANAMAND THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.No.928 of 2013 The Commissioner of Income Tax,Chennai.... Appellant Vs. Shri.M.ShanmughamNo.20, 2[nd] Street, Jai Nagar,Valasaravakkam,Chennai – 600 041.... RespondentTax Case Appeal preferred under Section 260A of the IncomeTax Act, 1961, against the order of the Income Tax AppellateTribunal,Madras,“C”Bench,dated25.09.2012inI.TA.No.1111/Mds/2012, Assessment Year 2007-08.Against the Appellate order of the Commissioner of IncomeTax (Appeals)-VIII, Chennai – 600 034, dated 22.02.2012 and madein ITA.Nos.86 & 177 / 10-11 / (A)-III, for the Assessment Year 2006-07; andAgainst the Assessment order of the Assistant Commissionerof Income – Tax, Business Circle -V, Chennai – 600 034, dated22.12.2010 and made in PAN/GIR No: for the AssessmentYear 2006-07. For Appellant : Mr.Karthik RanganathanSenior Standing CounselFor Respondent : Mr.Ashok Menon We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Mr.Ashok Menon,learned counsel for the respondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ the Income Tax Act, 1961 (“the Act” for brevity) is directedagainst the order dated 25.09.2012 made in I.TA.No.1111/Mds/2012on the file of the Income Tax Appellate Tribunal, Chennai, “C”Bench (for brevity, “the Tribunal”) for the Assessment Year2007-08. 3.The appeal was admitted on 03.03.2014 on the followingsubstantial question of law:“Whether on the facts and in the circumstancesof the case, the Appellate Tribunal was right indeleting the additions made by the Assessing Officertowards inflated purchases and accepting the cost ofpurchase of old bottles from street hawkers at ahigher price than the market price being sold byregistered sellers in a similar trade?” 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case is lessthan the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect.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. Sd/-Assistant Registrar(CS-IV) // True Copy// Sub Assistant Registrar mkn To 1. The Income Tax Appellate Tribunal, Chennai, “C” Bench, Chennai. 2. The Commissioner of Income Tax, Chennai. 3. The Commissioner of Income Tax (Appeals)-VIII, Chennai-600 034. 4. The Assistant Commissioner of Income Tax, Business Circle - V Chennai-600 034. +1cc to Mr.Ashok Menon, Advocate, S.R.No.39489 T.C.A.No.928 of 2013 PA(CO)SU(08/09/2021)