THE INCOME TAX OFFICER vs. SHRI JAYARAMAN MUTHUKUMAR

TCA.No.412 of 2020 In the High Court of Judicature at Madras Dated : 24.11.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.412 of 2020 Principal Commissioner of Income Tax-2, Chennai-34 ...Appellant Vs Shri Jayaraman Muthu Kumar ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 06.2.2019 made in ITA.No.2930/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench for the assessment year 2010-11. For Appellant: Mr.Karthik Ranganathan, SC assisted by Mr.Rajesh Sivanandham For Respondent: Mr.V.S.Jayakumar Judgment was delivered by

T.S.Sivagnanam,J

We have heard Mr.Karthik Ranganathan, learned Standing Counsel assisted by Mr.Rajesh Sivanandham, learned Junior Standing Counsel appearing for the appellant – Revenue and Mr.V.S.Jayakumar, learned counsel accepting notice for the respondent – assessee. 1/4 http://www.judis.nic.in TCA.No.412 of 2020 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 06.2.2019 made in ITA.No.2930/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench (for brevity, the Tribunal) for the assessment year 2010-11. 3. The Revenue has filed this appeal by raising the following substantial question of law : “Whether, on the facts and circumstances of the case and in law, the Tribunal was right in deleting the penalty levied by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961, when quantum appeal, on which the Department has preferred further appeal under Section 260A of the Act before this Court is pending for disposal and has not reached finality? ” 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 that the tax effect in this case is less than the threshold limit. 2/4 http://www.judis.nic.in TCA.No.412 of 2020 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 raised 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. 24.11.2020 To The Income Tax Appellate Tribunal, Chennai 'A' Bench. RS 3/4 http://www.judis.nic.in TCA.No.412 of 2020 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS TCA.No.412 of 2020 24.11.2020 4/4 http://www.judis.nic.in