Madras High Court
Commissioner Of Income Tax vs Shri A. Gnanpaul on 6 July, 2021
T.C.A.No.873 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.873 of 2014
Commissioner of Income Tax,
Coimbatore. ... Appellant
Vs.
Shri A. Gnanpaul,
Prop : M/s.Annai Fathima Leathers,
No.101A, Rmamurthy Nagar,
Erode – 638 303. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 07.03.2014 in I.T.A.No.1258/Mds/2013, Assessment
Year 2007-08.
For Appellant : Mr.T.R.Senthil Kumar
Senior Standing Counsel
and Mrs.K.G.Usha Rani
Standing Counsel
For Respondent : Mr.R.Kumar
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T.C.A.No.873 of 2014
for M/s.T.N.Seetharaman
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.T.R.Senthil Kumar, learned Senior Standing
Counsel and Mrs.K.G.Usha Rani, learned Standing Counsel for the
appellant/Revenue and Mr.R.Kumar, learned counsel for the
respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 07.03.2014 made in I.T.A.No.1258/Mds/2013 on the file of the
Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the
Tribunal) for the Assessment Year 2007-08.
3.The appeal was admitted on 17.11.2014 on the following
substantial questions of law:
“1.Whether under the facts and circumstances
of the case, the Income Tax Tribunal was right in
upholding that the order of the Commissioner of
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T.C.A.No.873 of 2014
Income Tax (Appeals) deleting the addition made by
the assessing officer in respect of creditors which
were not satisfactorily explained by the assessee?
2.Whether based on the material available
before the Income Tax Appellate Tribunal, it could
have come to the conclusion that the creditors whose
balances were added by the assessing officer were
satisfactorily explained by the assessee?
3.Whether on the facts and in the
circumstances of the case, the Tribunal was right in
upholding the order of the Commissioner of Income
Tax (Appeals) deleting additions, merely by relying
on its order in another case where the addition with
respect to same creditors were deleted?”
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
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T.C.A.No.873 of 2014
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 questions of law framed are 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.
[M.D., J.] [R.H., J.]
06.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “C” Bench
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T.C.A.No.873 of 2014
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.873 of 2014
06.07.2021
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