Commissioner Of Income Tax vs M/S.Thakadoor Spinning Mills (P) ...
2021 Latest Caselaw 734 Mad

                                                                   T.C.A.Nos.1222 & 1223 of 2010

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATE: 08.01.2021

                                                      CORAM:

                                    THE HON'BLE MR. JUSTICE M.DURAISWAMY
                                                     AND
                                   THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI

                                           T.C.A.Nos.1222 & 1223 of 2010

                     Commissioner of Income Tax,
                     Salem.                                        ... Appellant in both TCA
                                                         Vs.


                     M/s.Thakadoor Spinning Mills (P) Ltd.,
                     1C, Ramalinga Chetty Road,
                     Dharmapuri – 636 701.                         ... Respondent in both TCA

                               Appeals preferred under Section 260A of the Income Tax Act,
                     1961, against the order of the Income Tax Appellate Tribunal, Chennai,
                     ''C'' Bench, dated 30.04.2010 in ITA.Nos.98/Mds/2009 & 194/Mds/2009
                     Assessment Year 2004-05.
                               For Appellant    : Ms.V.Pushpa, Standing Counsel
                               (in both TCA)      for Mr.M.Swaminathan,
                                                  Senior Standing Counsel

                               For Respondent   : Ms.Sriniranjani Srinivasan
                               (in both TCA)      for Mr.G.Baskar




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                                                                      T.C.A.Nos.1222 & 1223 of 2010

                                                COMMON JUDGMENT
                                   (Judgment was delivered by T.V.THAMILSELVI, J.)



                               We have heard Ms.V.Pushpa, learned Standing Counsel for the

                     appellant – Revenue and Ms.Sriniranjani Srinivasan for the respondent –

                     Assessee.



                               2.These appeals, filed by the Revenue under Section 260A of the

                     Income Tax Act, 1961 (for short, the Act) are directed against the order

                     dated 30.04.2010 made respectively in ITA.Nos.98/Mds/2009 &

                     194/Mds/2009 on the file of the Income Tax Appellate Tribunal,

                     Chennai, ''C'' Bench (for brevity, the Tribunal) for the Assessment Year

                     2004-05.



                               3.The appeals were admitted on 14.02.2011 on the following

                     substantial question of law:

                                            “Whether    on    the   facts   and   in    the
                                      circumstances of the case, the Income Tax Appellate
                                      Tribunal was right in deleting the penalty u/s 271D
                                      of Rs.71,50,000/- levied by the Assessing Officer on

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                                                                     T.C.A.Nos.1222 & 1223 of 2010

                                     the ground that the assessee had made borrowings in
                                     case exceeding Rs.20,000/- in violation of Section
                                     269SS, holding that the transactions were genuine
                                     even though the assessee had not established any
                                     reasonable case within the meaning of Section
                                     273B?”



                               4.The learned Standing Counsel for the appellant submits that the

                     above appeals are 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

                     respective cases is less than the threshold limit.



                               5.In the light of the said submissions, the above Tax Case Appeals

                     are dismissed on account of the Low Tax Effect. The substantial question

                     of law framed is left open. In the event the tax effect in the respective

                     cases 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


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                                                                  T.C.A.Nos.1222 & 1223 of 2010

                     appeals to be heard and decided on merits. No costs.




                                                                 [M.D., J.]   [T.V.T.S., J.]
                                                                        08.01.2021

                     Index : Yes/No
                     Internet : Yes
                     va

                     To

                     The Income Tax Appellate Tribunal, Chennai, ''C'' Bench




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                                       T.C.A.Nos.1222 & 1223 of 2010


                                         M.DURAISWAMY, J.

and T.V.THAMILSELVI, J. va

T.C.A.Nos.1222 & 1223 of 2010

08.01.2021

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