PRINCIPAL COMMISSIONER OF IN vs. M/S.CAVINKARE PVT LTD

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TCA/313/2019HC Madras04 August 2022Bench: Hon`ble Mr Justice R. MAHADEVAN4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted the submission by the learned counsel for the appellant/Revenue regarding CBDT Circular No. 17/2019, which sets a monetary limit of Rs. 1,00,00,000/- for filing or pursuing appeals before the High Court. The Revenue stated that the tax effect in the present appeal was less than this threshold limit. Consequently, the High Court dismissed the appeal as withdrawn, in light of the tax effect being below the stipulated monetary limit. The substantial question of law was kept open for determination in an appropriate case. No costs were awarded.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, filed a Tax Case Appeal before the High Court of Judicature at Madras against an order dated 19.11.2018 passed by the Income Tax Appellate Tribunal (ITAT) Madras “A” Bench. The appeal pertained to assessment year 2003-04 and challenged the ITAT's decision to dismiss the Revenue's appeal. The ITAT had set aside a revision order passed under Section 263 of the Income Tax Act, 1961. The assessee is M/s. Cavinkare Private Limited. The appeal was admitted by the High Court on 11.06.2019.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in dismissing the Revenue's appeal on the ground that the revision order under Section 263 was set aside by the Tribunal, without considering that this order is the subject matter of an appeal filed by the department and pending before this High Court? (Question of law) Assessee's contentions: Not recorded. Revenue's contentions: The Revenue argued that the ITAT erred in dismissing its appeal by overlooking the fact that the ITAT's order setting aside the Section 263 revision order was itself under challenge before the High Court. The Revenue also brought to the court's notice CBDT Circular No. 17/2019 dated 08.08.2019, which stipulates that appeals shall not be filed or pursued if the tax effect does not exceed Rs. 1,00,00,000/-. The Revenue submitted that the tax effect in this appeal was below this threshold limit.

Which sections of the Income-tax Act were involved?

Section 260A,Section 263

AI-generated summary — verify with the full judgment below

TCA.No.313 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 04.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 313 of 2019 Principal Commissioner of Income Tax, Central 2, No.108, Mahatma Gandhi Road, Chennai.

.. Appellant Versus M/s. Cavinkare Private Limited, No.12, Cenotaph Road, Teynampet, Chennai 600 018.

.. Respondent Tax Case Appeal filed under Section 260 A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras “A” Bench, dated 19.11.2018 passed in ITA.No.1074/Chny/2018 for the assessment year 2003-04. For Appellant : Mr.S.Rajesh for Mr.Karthik Ranganathan Standing Counsel For Respondent : No appearance 1/4 https://www.mhc.tn.gov.in/judis TCA.No.313 of 2019

JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 19.11.2018 passed by the Income Tax Appellate Tribunal Madras “A” Bench in ITA.No.1074/Chny/2018 for the assessment year 2003-04. 2. By order dated 11.06.2019, this Court has admitted the Tax Case Appeal on the following substantial question of law; ' 1.Whether on the fact and in the circumstances of the case, the ITAT was right in dismissing the Revenue appeal, on the ground that the revision order u/s.263 was set aside by the Tribunal, without taking cognizance of the fact that the same is the subject matter of appeal filed by the department and pending before this High Court?' 3. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular 2/4 https://www.mhc.tn.gov.in/judis TCA.No.313 of 2019 No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial question of law for determination in an appropriate case. No costs. [R.M.D,J.] [M.S.Q., J.] 04.08.2022 msr

Index : Yes / No To 1. The Assistant Commissioner of Income Tax, Company Circle I (3), Chennai. 2. The Commissioner of Income Tax (Appeals)-18 Chennai-34 3. The Income Tax Appellate Tribunal Madras “A” Bench, Chennai. 3/4 https://www.mhc.tn.gov.in/judis TCA.No.313 of 2019 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr T.C.A.No. 313 of 2019 04.08.2022 4/4 https://www.mhc.tn.gov.in/judis

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