THE COMMISSIONER OF INCOME T vs. KANNI UVARAJ,

TCA.No.146 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.2.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.146 of 2021 The Commissioner of Income Chennai ...Appellant Vs Kanni Uvaraj ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 02.8.2017 passed by the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.3141/Mds/2016 for the assessment year 2013-14. For Appellant: Mr.T.Ravikumar, SSC For Respondent : Mr.Quadir Hussain Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated 02.8.2017 made in I.T.A.No.3141/Mds/2016 on the file of the 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.146 of 2021 Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) for the assessment year 2013-14. 2. The Revenue has filed this appeal by raising the following substantial questions of law: “1. Whether the Tribunal was right in deleting the penalty levied under Section 271(1)(c) especially when the assessee had offered additional income only after survey action was initiated by the Department ? and 2. Whether the Tribunal was right in deleting the penalty levied especially when additional concealed income was offered consequent to the survey action done by the Department by filing a revised return, which would otherwise have escaped taxation ?” 3. We have heard Mr.T.Ravikumar, learned Senior Standing Counsel appearing for the appellant/Revenue and Mr.Quadir Hussain, learned counsel accepting notice for the respondent/assessee. 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 08.8.2019 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 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.146 of 2021 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 questions of law raised are 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. 16.2.2021 To The Income Tax Appellate Tribunal, 'A' Bench, Chennai. RS 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.146 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS TCA.No.146 of 2021 16.2.2021 4/4 https://www.mhc.tn.gov.in/judis/