The Principal Commissioner Of Income Tax, Central I, Chennai v. M/S.jaya Educational Trust, Thiruninravur

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Principal Commissioner of Income Tax, Central I, Chennai ...Appellant/AppellantVsM/s.Jaya Educational Trust,Thiruninravur-602024. ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 22.1.2016 made in ITA.No.1359/Mds/2012 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2007-08 against the order of theCommissioner of Income Tax (Appeals)-I dated 30.03.2012 and madein ITA.No.84-09-10 and against the order of the AssistantCommissioner of Income Tax, Chennai dated 29.12.2008 for theassessment year 2007-2008. Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated22.1.2016 made in ITA.No. 1359/Mds/2012 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for theassessment year 2007-08. 1/3 3. The appeal was admitted on 07.12.2016 on the followingsubstantial questions of law : “i. Whether the Income Tax AppellateTribunal was justified in holding that therewas a reasonable cause within the meaning ofSection 273B for not disclosing the incomein the original return and consequently ingranting relief based on such assumedpresumption ? andii. Whether the Income Tax AppellateTribunal is correct in not considering thefact that there is non compliance within theprovisions of Explanation 5(b)(2) to Section271(1)(c) and therefore, the assessee isliable for penalty under the provisions ofthat Section ?" 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 questions of law framed are 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 (CS III ) /true copy/Sub Asst. Registrar rs To1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2/3 2.The Commissioner of Income Tax (Appeals)-246, Mahatma Gandhi Road, Nungambakkam Chennai-600 034 3. The Assistant Commissioner of Income TaxCentral Circle-I(2) Chennai-600 034 +1 cc to Mr.S.Sridhar Advocate sr 76088 +1 cc to Mr.T.R.Senthil kumar Advocate sr75709 mp(co)aa11/11/2019 3/3 TCA.No.583 of 2016