COMMISSIONER OF INCOME TAX vs. AMBIKA WOODS PVT LTD

T.C.A.Nos.1038, 1040 & 1049 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 19.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.1038, 1040 & 1049 of 2019 and C.M.P.Nos.27071, 27074 & 27087 of 2019 Commissioner of Income Tax, TDS Ward, Tirunelveli. ... Appellant (in all the appeals) Vs M/s.Ambika Woods Pvt. Ltd., 1/351, 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.992, 993 & 991/Mds/2017, respectively. For Appellant :Mr.Karthik Ranganathan (in all the appeals) Senior standing counsel 1/6 http://www.judis.nic.in T.C.A.Nos.1038, 1040 & 1049 of 2019 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.991 to 993/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.043 to 045/2016-17, 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 : “(i)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? 2/6 http://www.judis.nic.in T.C.A.Nos.1038, 1040 & 1049 of 2019 (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)? " 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 3/6 http://www.judis.nic.in T.C.A.Nos.1038, 1040 & 1049 of 2019 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 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) 19.12.2019 sai 4/6 http://www.judis.nic.in T.C.A.Nos.1038, 1040 & 1049 of 2019 To 1.The Commissioner of Income Tax, TDS Ward, Tirunelveli. 2.Income Tax Appellate Tribunal 'B' Bench, Chennai. 5/6 http://www.judis.nic.in T.C.A.Nos.1038, 1040 & 1049 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

sai T.C.A.Nos.1038, 1040 & 1049 of 2019 Dated : 19.12.2019 6/6 http://www.judis.nic.in