THE COMMSSIONOR OF INCOME TAX vs. G.GITA

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TCA/182/2015HC Madras25 June 2021Bench: Hon`ble Mr Justice M.DURAISWAMY4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn on account of low tax effect, as per the submissions made by the Revenue citing CBDT Circular No. 17/2019. The Court noted that the monetary limit for filing or pursuing an appeal before the High Court had been increased to Rs. 1 crore by this circular, and the tax effect in the present case was below this threshold. The substantial question of law framed at the time of admission was left open. Liberty was granted to the Revenue to seek restoration of the appeal if the tax effect was found to be above the threshold limit, to be heard and decided on merits. No costs were awarded. The specific finding of the Tribunal on the revised return was not adjudicated upon by the High Court.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal, Chennai, dated July 31, 2014. This order pertained to Assessment Year 2009-2010 and was in relation to an appeal filed by the assessee, G. Gita. The appeal was admitted by the High Court on a substantial question of law concerning the Tribunal's decision to ignore a revised return filed by the assessee under Section 139(5) of the Act. The Revenue later submitted that it was not pursuing the appeal due to low tax effect, citing CBDT Circular No. 17/2019 which increased the monetary limit for appeals to Rs. 1 crore.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in ignoring the revised return filed by the assessee in terms of Section 139(5) of the Income Tax Act? The Revenue argued that the appeal was not being pursued due to low tax effect, referencing CBDT Circular No. 17/2019, which raised the monetary threshold for appeals to the High Court to Rs. 1 crore. The Revenue stated that the tax effect in this case was below this limit. No arguments were recorded for the assessee.

Which sections of the Income-tax Act were involved?

Section 260A,Section 139(5)

AI-generated summary — verify with the full judgment below

T.C.A.No.182 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 25.06.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE R.HEMALATHA T.C.A.No.182 of 2015 The Commissioner of Income Tax, Chennai. ... Appellant v. G. Gita ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, "C" Bench, dated 31.07.2014 in ITA.No.1142/Mds/2014 for the Assessment Year 2009-10. For Appellant : Mr. Karthik Ranganathan, Senior Standing Counsel For Respondent : Mr. Ashokapathy for M/s.Pass Associates Page 1/4 https://www.mhc.tn.gov.in/judis/ T.C.A.No.182 of 2015 JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) We have heard Mr. Karthik Ranganathan, learned Senior Standing Counsel for the appellant/Revenue and Mr.Ashokapathy, learned counsel for the respondent. 2. The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 31.07.2014 made in ITA.No.1142/Mds/2014 on the file of the Income Tax Appellate Tribunal, Chennai, "C" Bench (for brevity, the Tribunal) for the Assessment Year 2009-2010. 3. The appeal was admitted on the following substantial question of law:- “Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in ignoring the revised return filed by the assessee in terms of Section 139(5) of the Income Tax Act?” Page 2/4 https://www.mhc.tn.gov.in/judis/ T.C.A.No.182 of 2015 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 as withdrawn on account of the Low Tax Effect. The substantial question of law framed is left open. In the event the tax effect in this case is above the threshold limit fixed in the said Circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs. [M.D., J.] [R.H., J.] Index : Yes/No 25.06.2021 Internet : Yes gv Page 3/4 https://www.mhc.tn.gov.in/judis/ T.C.A.No.182 of 2015 M. DURAISWAMY, J. and R.HEMALATHA,J gv To The Income Tax Appellate Tribunal, Chennai,"C" Bench T.C.A.No.182 of 2015 25.06.2021

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