COMMISSIONER OF INCOME TAX vs. M/S.NEW AMBIKA SAW MILL

TCA/1036/2019HC Madras17 December 2019Bench: Hon`ble Mr Justice N. KIRUBAKARAN6 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Tax Case Appeals filed by the Revenue on the ground of insufficient tax effect. The Court referred to Circular No. 17/2019 dated 08.08.2019, which stipulates that appeals before the High Court should have a monetary limit of Rs. 1 crore. As the tax effect in the present cases was less than this limit, the appeals were dismissed. However, the Court explicitly stated that the substantial questions of law framed were left open. The Revenue was granted liberty to mention the case before the Court to restore the appeals for hearing and decision on merits if the tax effect was found to be above the prescribed limit in the future. No costs were imposed, and connected miscellaneous petitions were closed.

What were the facts?

The Revenue (Commissioner of Income Tax, TDS Ward, Tirunelveli) filed these three Tax Case Appeals (T.C.A.Nos.1036, 1043 & 1047 of 2019) against the order dated 12.07.2017 passed by the Income Tax Appellate Tribunal (ITAT), Chennai 'B' Bench. The appeals pertain to assessment years 2013-14, 2014-15, and 2015-16. The Revenue was aggrieved by the order of the CIT(A)-2, Madurai, dated 31.01.2017, which had rejected the Revenue's appeals and dismissed them. The ITAT's order, which is the subject of challenge, had previously dismissed the Revenue's appeals.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether, on the facts and in law, the ITAT was right in holding that the belated filing of Form No. 27C by the assessee (M/s. New Ambika Saw Mill) after the due date specified in sub-rule (3) of Rule 37C of the Income Tax Rules, 1962, was in accordance with law and substantially achieved its objective. 2. Whether, on the facts and in law, the ITAT was justified in not considering the Special Leave Petition (SLP) filed by the Revenue, which was admitted by the Apex Court in the case of Siyaram Metal Udyog Pvt. Ltd., concerning the submission of Form 27C. The Revenue argued that the tax effect in these cases was less than Rs. 1 crore and was covered by Circular No. 17/2019 dated 08.08.2019 issued by the CBDT, which fixed the monetary limit for filing appeals before the High Court at Rs. 1 crore. Therefore, the appeals should be dismissed. The judgment does not record any specific arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.1036, 1043 & 1047 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 17.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.1036, 1043 & 1047 of 2019 and C.M.P.Nos.27067, 27077 & 27082 of 2019 Commissioner of Income Tax, TDS Ward, Tirunelveli. ... Appellant (in all the appeals) Vs M/s.New Ambika Saw Mill, 1/952, Piranoor Border, Thenkasi Road, Shenkottah, Tirunelveli Dist. 627 809 PAN: AACCA 9132 C ... Respondent (in all the appeals) PRAYER : Appeals under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “B” Bench, dated 12.07.2017 passed in ITA.Nos.988, 989 & 990/Mds/2017. For Appellant :Mr.Karthik Ranganathan (in all the appeals) Senior standing counsel 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 12.07.2017 passed in ITA.Nos.988, 989 & 1/6 http://www.judis.nic.in T.C.A.Nos.1036, 1043 & 1047 of 2019 990/Mds/2017 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment years 2013-14, 2014-15 & 2015-16. 2.The impugned order was filed by the Revenue aggrieved by the order of the CIT(A)-2, Madurai, dated 31.01.2017 in ITA Nos.046 to 048/2016-17, where the Tribunal rejected the plea of the Revenue and dismissed the Appeals. 3.These Appeals are admitted on the following substantial questions of law : “Whether on the facts and circumstances of the case and in law, the ITAT was right in holding that the belated filing of Form No.27C by the assessee after the due date as specified in sub rule (3) of Rule 37C of Income Tax Rules, 1962 was in accordance with law and hence the object sought to be achieved by filing Form 27C substantially achieved? (ii)Whether on the facts and circumstances of the case and in law, the ITAT was justified in not considering the SLP filed by the revenue was admitted by the Apex Court in the case of Siyaram Metal Udyog Pvt. Ltd., on the issue of submission of Form 27C [2017] 78 taxmann.com 157 (SC)? " 2/6 http://www.judis.nic.in T.C.A.Nos.1036, 1043 & 1047 of 2019 4.Mr.Karthik Ranganathan, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect 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: 3/6 http://www.judis.nic.in T.C.A.Nos.1036, 1043 & 1047 of 2019 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 3. Before Supreme Court 2,00,00,000 6.In view of the submissions made by the learned 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. Consequently, connected Miscellaneous Petitions are closed. (NKKJ) (PVJ) 17.12.2019 sai 4/6 http://www.judis.nic.in T.C.A.Nos.1036, 1043 & 1047 of 2019 To 1.The Commissioner of Income Tax, TDA Ward, Tirunelveli. 2.Income Tax Appellate Tribunal 'B' Bench, Chennai. 5/6 http://www.judis.nic.in T.C.A.Nos.1036, 1043 & 1047 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

sai T.C.A.Nos.1036, 1043 & 1047 of 2019 Dated : 17.12.2019 6/6 http://www.judis.nic.in

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