The Principal Commissioner Of Income Tax Central 2No v. M/S.snj Distillers Pvt. Ltd.,New

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 09.09.2020 CORAM THE HONOURABLE Mr.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE Mrs.JUSTICE V.BHAVANI SUBBAROYAN T.C.A.Nos.262 & 263 of 2018 The Principal Commissioner of Income Tax Central 2No.108, Mahatma Gandhi RoadChennai – 600 034 ...Appellant/Appellant(in both appeals) Versus M/s.SNJ Distillers Pvt. Ltd.,New No.99, Canal Banks RoadCIT Nagar, NandanamChennai – 600 035.PAN: ...Respondent/Respondent (in both appeals) Common Prayer:- Tax Case Appeals filed under Section 260-A ofthe Income Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras ''B'' Bench, dated 31.05.2017 inI.T.A.No.1042/Mds/2016 and ITA.No.1043/Mds/2016, respectivelyand against the common order of the Commissioner of Income Tax(Appeals – 18), No.46, Mahatma Gandhin Road, Nungambakkam,Chennai – 34, dt.07/01/2016, made in ITA. No. 298 to 301/15-16,for the assessment year 2011-2012, 2012-2013 respectively andagainst the order of the Deputy Commissioner of Income TaxCentral Circle – 2(1), Chennai – 34, dt.30/03/2015, made in PAN- , for the assessment year 2011-12 and 2012-2013respectively. For Appellant: Mr.T.R.Senthil Kumar(in both appeals)Senior Standing Counsel For Respondent: Mr.R.Vijayaraghavan(in both appeals)for Mr.Subbaraya Aiyar Padmanabhan [Order of the Court was made by T.S.SIVAGNANAM, J.] These appeals filed by the Revenue, under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity) are directedagainst the orders, dated 31.05.2017 passed by the Income TaxAppellate Tribunal, Madras 'B' Bench, ('the Tribunal' forbrevity), in I.T.A.No.1042/Mds/2016 and ITA.No.1043/Mds/2016,for the assessment year 2011-12 & 2012-13. 2. These appeals are entertained on the followingsubstantial question of Law: Whether on the facts and circumstance of the case theAppellate Tribunal was right in holding that theRevenue appeal is not maintainable, since the taxeffect is less than Rs.10,00,000/-, withoutappreciating clause 5 of the CBDT Circular No.21/2015,which provides in case of a composite order Revenueappeal is maintainable even though the tax effect isbelow monetary limit? 3. Mr.T.R.Senthil Kumar, learned Senior Standing Counselappearing for the appellant-Revenue, submitted that the Tribunalhad fell in error in dismissing the appeals filed by the Revenuebefore it, on the ground of low tax effect, by referring to thecircular of CBDT No.21/2015, dated 10.12.2015. 4. It is the submission of Mr.R.Vijayaraghavan, the learnedcounsel appearing for the respondent-assessee that these appealsitself cannot be pursued by the Revenue on account of low taxeffect as fixed by CBDT, vide Circular No.17/2019 dated08.8.2019. 5. Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel appearing for the Revenue and Mr.R.Vijayaraghavan,learned counsel appearing for the respondent-assessee. 6. We observe that the Tribunal has committed error in itsfinding in terms of paragraph No.5 of the Circular No.21/2015,as per which, if the disputed issue arises in more than oneassessment years, appeals can be filed by the Revenue in suchassessment year or years, regardless of the monetary units.Therefore, we hold that the finding rendered by the Tribunal inparagraph No.6 of its common order dated 31.05.2017 inITA.Nos,1042,1042 &1044/Mds/2016, is incorrect. Nevertheless ason date, the Revenue cannot pursue the present appeals becauseof the monetary limit fixed in the latest CBDT's Circular No.17/2019 dated 08.8.2019. 7. In the light of the above, the tax case appeals aredismissed on account of the low tax effect. The substantialquestion of law framed is left open. In the event the tax effectis above the threshold limit fixed in the said circular, libertyis granted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Sd/- Assistant Registrar No.17/2019 dated 08.8.2019. 7. In the light of the above, the tax case appeals aredismissed on account of the low tax effect. The substantialquestion of law framed is left open. In the event the tax effectis above the threshold limit fixed in the said circular, libertyis granted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar ds To :1.The Principal Commissioner of Income Tax Central 2 No.108, Mahatma Gandhi Road Chennai – 600 0342.The Income Tax Appellate Tribunal Chennai, 'B' Bench.3.The Commissioner of Income Tax (Appeals-18) No.46, Mahatma Gandhi Road, Nungambakkam, Chennai – 34.4.The Deputy Commisioner of Income Tax, Central Circle – 2(1), Chennai – 34.+1cc to Mr.Subbaraya Aiyar, Advocate, SR.No.29575 dated 10/09/2020 T.C.A.Nos.262 & 263 of 2018 MR(CO)RN(23/10/2020)