Madras High Court
The Commissioner Of Income Tax vs Shri.M.Shanmugham on 9 August, 2021
T.C.A.No.929 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 09.08.2021
CORAM :
THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
AND
THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP
T.C.A.No.929 of 2013
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
Shri.M.Shanmugham
No.20, 2nd Street, Jai Nagar,
Valasaravakkam,
Chennai – 600 041. ... Respondent
Tax Case Appeal preferred under Section 260A of the Income Tax
Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 25.09.2012 in C.O.No.108/Mds/2012 in
I.T.A.No.1110/Mds/2012, Assessment Year 2006-07.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.Ashok Menon
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T.C.A.No.929 of 2013
JUDGMENT
(Judgment was delivered by T.S. SIVAGNANAM, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.Ashok Menon, learned counsel
for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the Income
Tax Act, 1961 (“the Act” for brevity) is directed against the order dated
25.09.2012 made in C.O.No.108/Mds/2012 in I.T.A.No.1110/Mds/2012 on
the file of the Income Tax Appellate Tribunal, Chennai, “C” Bench (for
brevity, “the Tribunal”) for the Assessment Year 2006-07.
3.The appeal was admitted on 03.03.2014 on the following substantial
question of law:
“Whether on the facts and in the circumstances of the
case, the Appellate Tribunal was right in deleting the
additions made by the Assessing Officer towards inflated
purchases and accepting the cost of purchase of old bottles
from street hawkers at a higher price than the market price
being sold by registered sellers in a similar trade?”
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T.C.A.No.929 of 2013
4.The learned Senior Standing Counsel for the appellant submits that
the above appeal is not pursued by the Revenue on account of the Low Tax
Effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the
Central Board of Direct Taxes. By the said Circular, the monetary limit for
filing or pursuing an appeal before the High Court has been increased to
Rs.1 Crore. It is further submitted that the tax effect in this case is less than
the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal is
dismissed as withdrawn on account of the Low Tax Effect. The substantial
question of law framed is left open. In the event the tax effect in this case is
above the threshold limit fixed in the said Circular, liberty is granted to the
Revenue to make a mention to this Court to restore the appeal to be heard
and decided on merits. No costs.
(T.S.S., J.) (S.S.K., J.)
09.08.2021
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mkn
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T.C.A.No.929 of 2013
Internet : Yes
Index : Yes / No
To
1.The Income Tax Appellate Tribunal, Chennai, “C” Bench
2.The Commissioner of Income Tax,
Chennai.
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T.C.A.No.929 of 2013
T.S. SIVAGNANAM, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
mkn
T.C.A.No.929 of 2013
09.08.2021
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