THE COMMISSIONER OF INCOME T vs. M/S.RC GOLDEN GRANITES PVT L

TCA.No.106 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.02.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.106 of 2021 The Commissioner of Income Tax, Chennai. ...Appellant Vs M/s.RC Golden Granites Pvt. Ltd., No.4, 7th Cross Street, Sastri Nagar, Adyar, Chennai - 600 020 PAN: AADCR3826P ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 18.01.2018 made in ITA.No.1376/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai for the assessment year 2011-12. For Appellant: Mrs.R.Hemalatha Senior Standing Counsel 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.106 of 2021 JUDGMENT (Delivered by

T.S.Sivagnanam,J

) This appeal, filed by the Revenue, is directed against the order dated 18.01.2018 made in ITA.No.1376/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai (for brevity, the Tribunal) for the assessment year 2011-12. 2. The appellant-Revenue has raised the following substantial question of law for consideration: "Whether the Tribunal was right in deleting the disallowance made u/s.40A(3) amounting to Rs.1.24 crores holding that the said provisions were not attracted in the case of cash withdrawal made by the Assessee Company drawn through self cheques and used for making payments towards incurring expenditure?" 3. We have heard Mrs.R.Hemalatha, learned Senior Standing Counsel for the appellant-Revenue. 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.106 of 2021 4. The learned Senior Standing Counsel appearing 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 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 on account of the low tax effect. The substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S.,J.) (R.N.M.,J.) 02.02.2021 Index: Yes/No Internet:Yes/No Speaking Judgment/Non speaking Judgment hvk 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.106 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk To 1. The Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai. 2. The Commissioner of Income Tax, Chennai. TCA.No.106 of 2021 02.02.2021 4/4 https://www.mhc.tn.gov.in/judis/