The Commissioner Of Income-Tax,Coimbatore v. Shri.p.v.chandran,9A, Valluvar Street, Sivanandha Colony,Coimbatore-641 012

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.11.2018 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.352 of 2009 The Commissioner of Income-tax,Coimbatore. ... Appellant/ Respondent -vs- Shri.P.V.Chandran,9A, Valluvar Street, Sivanandha Colony,Coimbatore-641 012.PAN . PAN .... Respondent/ AppellantTax Case (Appeal) filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunalBench'D', Chennai, dated26.09.2008, inI.T.A.No.1374/Mds/2008 for the assessment year 2006-07. andagainst the order of the Commissioner of Income Tax (Appeals)-I,Coimbatore, dated:02/06/2008 in Appeal No.277/07-08 and againstthe order of the Assissant Commissioner of Income Tax, Circle-II, Coimbatore-18, dated:02/01/2008 in PAN.No.GIR.No. For Appellant :Mr.T.R.Senthil Kumar,Senior Standing Counsel For Respondent:Mr.G.Baskar,and Ms.Sree Lakshmi ValliJUDGMENT(Delivered by T.S.Sivagnanam, J.) This appeal, filed by the Revenue under Section 260A ofthe Income-tax Act, 1961, is directed against the order of theIncome Tax Appellate Tribunal Bench 'D', Chennai, dated26.09.2008, in I.T.A.No.1374/Mds/2008 for the assessment year2006-07. https://hcservices.ecourts.gov.in/hcservices/ 2. The appeal has been admitted, on 22.06.2009, on thefollowing substantial questions of law:-“(i) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in law in restoring the issue to thefile of the assessing officer, even though theclaim of the assessee has not related to the yearunder consideration and the assessee has notproduced any evidence for the nature of servicesrendered such as Drafting of Agreement with theTamil Nadu Electricity Board or Project Report forobtaining the Bank Loan?(ii) Whether on the facts and in thecircumstances of the case, the Income-taxAppellate Tribunal was right in law in restoringthe issue to the file of the assessing officerwith a direction to decide afresh in accordancewith law, even though charging of interest undersections 234B & 234C is validly initiated by theassessing officer?” 3. Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the appellant and Mr.G.Baskar, learned counsel forthe respondent. 4. We have perused the order of assessment as well as theorder passed by the Commissioner of Income Tax (Appeals)-I andwe find that the tax effect in this appeal is lesser than thethreshold limit mentioned in Circular No.3 of 2018, dated11.07.2018, issued by the Central Board of Direct Taxes, whichfixes the monetary limit as Rs.50,00,000/- for the Department topursue the matter. Furthermore, the Revenue has not been ableto point out any distinguishing features, by which the CircularNo.3 of 2018, dated 11.07.2018, cannot be applied. 5. Thus, for the above reasons, the Revenue cannot pursuethis appeal in view of the low tax effect. Hence, this appealis dismissed and the substantial questions of law, framed forconsideration, are left open. No costs. The Revenue is atliberty to seek for restoration of appeal if at a later point oftime, it is found that the tax effect is above the thresholdlimit or to fall under the exceptional clauses mentioned in theCircular. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal Bench 'D', Chennai. Chennai. 2.The Commissioner Income Tax, (Appeals)-ICoimbatore.Coimbatore. 3.The Assistant Commissioner of Income Tax, Circle-II, Coimbatore-18 +1cc to Mr.N.Muthukumar, Advocate, S.R.No.79724 +1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.79910T.C.(A) No.352 of 2009KK(CO)GSP(20/12/2018)