The Commissioner Of Income Tax,Chennai v. Shri.p.suryanarayana21, Thirumalaipillai Road,T.nagar, Chennai-17

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 24.09.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.1249 of 2008 The Commissioner of Income Tax,Chennai. ... Appellant -vs- Shri.P.Suryanarayana21, Thirumalaipillai Road,T.Nagar, Chennai-17 ... Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of theIncome Tax Appellate Tribunal Chennai 'B' Bench, dated 7.3.2008 in ITA No.672/Mds/2003, for theassessment year 1994-95. For Appellant : Mrs.R.Hemalatha For Respondent : Mr.S.Subramanian forMr.B.Raveendran JUDGMENT [Judgement of the Court was delivered by T.S.Sivagnanam, J.]This appeal by the Revenue is directed against the order passed by the Income Tax AppellateTribunal, Madras 'B' Bench, dated 7.3.2008 in ITA No.672/Mds/2003, for the assessment year1994-95. 2.Heard Mrs.R.Hemalatha, learned Counsel for the Revenue and Mr.S.Subramanian forMr.B.Raveendran, learned Counsel for the Respondent. 3.This Appeal has been admitted on 20.08.2008, on the following Substantial Questions of Law:"1.Whether in the facts and circumstances of the case, the Tribunal was right in deleting theaddition made on account of unexplained investment in the purchase of plot and construction of residential property, when the property from the sale of which the investment was said to have beenmade, was much after the purchase of the plot? 2.Whether on the facts and circumstances of the case, the Tribunal was right in holding that theCommissioner of Income-tax (Appeals) is justified in admitting fresh evidence, which is contrary tothe Rule laid down in 46A(1)?". 4.We have perused the order of Assessment as well as the Order passed by the Commissioner ofIncome Tax, under Section 263 of the Income Tax Act, 1961 and we find that the tax effect in thisappeal is lesser than the threshold limit mentioned in Circular No.3 of 2008, dated 11.07.2018,issued by the Central Board of Direct Taxes, which fixes the monetary limit as Rs.50,00,000/- for theDepartment to pursue the matter. Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018, dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursue this Appeal in view of the low tax effect.Hence, the Appeal is dismissed and the Substantial Questions of Law, framed for consideration, areleft open. No costs. [T.S.S., J.] & [V.B.S., J.]24.09.2018 msk T.S.Sivagnanam, J. and V.Bhavani Subbaroyan, J. msk To 1.The Income Tax Appellate Tribunal Madras 'B' Bench.