The Commissioner Of Income vs Kanni Uvaraj
2021 Latest Caselaw 3912 Mad

Citation : 2021 Latest Caselaw 3912 Mad
Judgement Date : 16 February, 2021

Madras High Court

The Commissioner Of Income vs Kanni Uvaraj on 16 February, 2021

                                                                                 TCA.No.146 of 2021


                                       IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED : 16.2.2021

                                                           CORAM

                                       THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM

                                                            and

                                         THE HONOURABLE MS.JUSTICE R.N.MANJULA

                                               Tax Case Appeal No.146 of 2021

                     The Commissioner of Income
                     Chennai                                                      ...Appellant
                                                             Vs
                     Kanni Uvaraj                                                 ...Respondent

APPEAL under Section 260A of the Income Tax Act, 1961 against

the order dated 02.8.2017 passed by the Income Tax Appellate

Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.3141/Mds/2016

for the assessment year 2013-14.

For Appellant: Mr.T.Ravikumar, SSC For Respondent : Mr.Quadir Hussain

Judgment was delivered by T.S.SIVAGNANAM,J

This appeal has been filed by the Revenue under Section 260A of

the Income Tax Act, 1961 ('the Act' for brevity) challenging the order

dated 02.8.2017 made in I.T.A.No.3141/Mds/2016 on the file of the

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Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for

brevity) for the assessment year 2013-14.

2. The Revenue has filed this appeal by raising the following

substantial questions of law:

“1. Whether the Tribunal was right in deleting the penalty levied under Section 271(1)(c) especially when the assessee had offered additional income only after survey action was initiated by the Department ? and

2. Whether the Tribunal was right in deleting the penalty levied especially when additional concealed income was offered consequent to the survey action done by the Department by filing a revised return, which would otherwise have escaped taxation ?”

3. We have heard Mr.T.Ravikumar, learned Senior Standing

Counsel appearing for the appellant/Revenue and Mr.Quadir Hussain,

learned counsel accepting notice for the respondent/assessee.

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

08.8.2019 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

https://www.mhc.tn.gov.in/judis/ TCA.No.146 of 2021

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 on account of the low tax effect. The substantial questions

of law raised are left open. In the event the tax effect is above the

threshold limit fixed in the said circular, liberty is granted to the