THE COMMISSIONER OF INCOME-T vs. M/S.PREMIER SYNTHETIC INDUST

T.C.A.Nos.1012 to 1014 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 12.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.1012 to 1014 of 2019 The Commissioner of Income Tax, Coimbatore. ... Appellant in all the appeals Vs M/s. Premier Synthetic Industries Premier House, 185 ATD Street, Race Course, Coimbatore – 18. ... Respondent in all the appeals Prayer in TCA No.1012 of 2019: Appeal under Section 260A of the Income Tax Act, 1961 as against the order of the Income Tax Appellate Tribunal “D” Bench, Chennai dated 13.10.2006 passed in ITA Nos. 1966/Mds/2000 for the assessment year 1987-88. Prayer in TCA No. 1013 of 2019:Appeal under Section 260A of the Income Tax Act, 1961 as against the order of the Income Tax Appellate Tribunal “D” Bench, Chennai dated 13.10.2006 passed in ITA Nos. 1967/Mds/2000 for the assessment year 1988-89. 1/6 http://www.judis.nic.in T.C.A.Nos.1012 to 1014 of 2019 Prayer in TCA No. 1014 of 2019:Appeal under Section 260A of the Income Tax Act, 1961 as against the order of the Income Tax Appellate Tribunal “D” Bench, Chennai dated 13.10.2006 passed in ITA Nos. 1968/Mds/2000 for the assessment year 1988-89. For Appellant : Mr.T.R. Senthilkumar Senior Standing Counsel (in all the appeals) For Respondent : Mr.Venkat Narayanan for M/s. Subbarayan Aiyar Padmanabhan & Ramani (in all the appeals) C O M M O N J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) These Tax Case Appeals have been preferred by the Revenue against the order dated 13.10.2006 passed in ITA.Nos.1966 to 1968/Mds/2000 on the file of the Income Tax Appellate Tribunal, Madras 'D' Bench for the assessment years 1987-88, 1988-89 & 1988-89 respectively. 2.As against the assessment orders passed by the Assessing Officer dated 31.03.1993, the assessee preferred appeals before the Commissioner of Income Tax (Appeals), which came to be dismissed 2/6 http://www.judis.nic.in T.C.A.Nos.1012 to 1014 of 2019 by order dated 04.09.2000 by upholding the penalties levied under Section 271(1)(c) of the Income Tax Act, 1961 pertaining to assessment years 1987-88 & 1988-89 as well as confirming the penalty levied under Section 273(2)(c) of the Act for the assessment year 1988-89. Aggrieved by the said order, the assessee preferred appeals before the Income Tax Appellate Tribunal, Chennai “D” Bench in I.T.A. Nos. 1966 to 1968/Mds/2000 and the Tribunal, by the order under challenge, while dismissing the appeals in I.T.A. Nos. 1966 & 1968/Mds/2000, allowed the appeal in I.T.A. No. 1967/Mds/2000. As against the same, the Revenue has filed the present appeals. 3.The appeals are admitted 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 law in deleting the penalty under Section 273(2)(a) of the Income Tax Act, 1961, eventhough the assessee furnished the statements understating the profits for the purpose of advance-tax?” 4.Mr.T.R.Senthilkumar, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect 3/6 http://www.judis.nic.in T.C.A.Nos.1012 to 1014 of 2019 in these cases are less than Rs.1 crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 crore. In these cases, tax effect is less than Rs.1 crore and therefore, these cases have to be dismissed. 5.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the said Circular, which prescribes monetary limit for filing appeal is usefully extracted as follows: 2.As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals / SLPs in Income- tax matters Monetary Limit (Rs.) 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 4/6 http://www.judis.nic.in T.C.A.Nos.1012 to 1014 of 2019 S.No. Appeals / SLPs in Income- tax matters Monetary Limit (Rs.) 3. Before Supreme Court 2,00,00,000 6.In view of the submissions made by the learned Senior Standing counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, these Tax Case Appeals are dismissed on account of tax effect. However, the substantial question of law framed is left open. In the event the tax effect is above the limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decided on merits. No costs. (NKKJ) (PVJ) 12.12.2019 sai To 1.The Commissioner of Income Tax, Coimbatore. 2.The Income Tax Appellate Tribunal, Chennai “D” Bench. 5/6 http://www.judis.nic.in T.C.A.Nos.1012 to 1014 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

sai T.C.A.Nos.1012 to 1014 of 2019 Dated : 12.12.2019 6/6 http://www.judis.nic.in