PRINCIPAL COMMISSIONER OF vs. M/S. THE ZIGMA TECHNOLOGIES(

1 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 06.06.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.27 of 2018 Principal Commissioner of Income Tax 2, No.63, Race Course Road, Coimbatore. ... Appellant

-vs- M/s.The Zigma Technologies (I) (P) Ltd., No.747, Amar Complex, S.K.C.Road, Erode-638 001. PAN : AAC CT 0611K ... Respondent Appeal under Section 260A of the Income Tax Act, 1961 against the order dated 03.04.2017 made in I.T.A.No.694/Mds/2016 on the file of the Income Tax Appellate Tribunal 'D' Bench, Chennai for the assessment year 2011-12. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel For Respondent : Mr.A.S.Sriraman ****** http://www.judis.nic.in 2 JUDGMENT (Judgement of the Court was delivered by T.S.Sivagnanam, J.) This appeal, by the appellant/Revenue filed under Section 260A of the Income-tax Act, 1961, is directed against the order of the Income Tax Appellate Tribunal 'D' Bench, Chennai, dated 03.04.2017, in I.T.A.No.694/Mds/2016 for the assessment year 2011-12. 2.The above appeal has been filed raising the following substantial question of law:- “Whether the Tribunal is correct in deleting the penalty levied under Section 271(1)(c), when the assessee made excess and wrong claim of 100% depreciation on the “Temporary Structure” in the leased premises whereas the assessee is entitled only of 10% depreciation?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the appellant/Revenue; and Mr.A.S.Sriraman, learned counsel for the respondent/assessee. http://www.judis.nic.in 3 4.The learned Senior Standing Counsel for the Revenue submits that the appeal is not being pursued by the Revenue on account of low tax effect in the light of the Circular No.3 of 2018, dated 11.07.2018. 5.Thus, by applying the above Circular, this tax case appeal stands dismissed on the ground of low tax effect and the substantial question of law, framed for consideration, is left open. The Revenue is at liberty to seek for restoration of appeal if at a later point of time, it is found that the tax effect is above the threshold limit or to fall under the exceptional clauses mentioned in the Circular. No costs. (T.S.S., J.) (V.B.S., J.) 06.06.2019 abr To 1.The Assistant Commissioner of Income-tax (Circle-1), Erode-638 001. 2.The Commissioner of Income-tax (Appeals)-3, Coimbatore. 3.The Income Tax Appellate Tribunal 'D' Bench, Chennai. http://www.judis.nic.in 4 T.S.Sivagnanam, J. and V.Bhavani Subbaroyan, J. (abr) T.C.A.No.27 of 2018

06.06.2019 http://www.judis.nic.in