CHIEF COMMISSIONER OF INCOME vs. J.MUTHUKUMAR

T.C.A.No.415 of 2020 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 27.11.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MR.JUSTICE R.PONGIAPPAN T.C.A.No.415 of 2020 Chief Commissioner of Income Tax, International Taxation Ward 1(2) Nungambakkam, Chennai – 600 034

.. Appellant Versus Mr.J.Muthukumar

.. Respondent Prayer:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai made in I.T.A.No.2203/Chny/2017 dated 13.02.2018 relating to the Assessment Year 2010-11. For Appellant : Mr.R.Karthik Ranganathan For Respondent : Mr.V.S.Jayakumar 1/4 http://www.judis.nic.in T.C.A.No.415 of 2020 JUDGMENT [Order of the Court was made by

T.S.SIVAGNANAM

, J.]

We have heard Mr.R.Karthik Ranganathan, learned counsel appearing for the appellant / Revenue and Mr.V.S.Jayakumar, learned counsel for the respondent / assessee. 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 13.02.2018 made in I.T.A.No.2203/Chny/2017 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the Assessment Year 2010-11. 3. The Revenue has raised the following Substantial Questions of Law for consideration: “1.Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal was right in allowing the income when the assessee has not furnished any proof of evidence for 2/4 http://www.judis.nic.in T.C.A.No.415 of 2020 payment of tax on the said income and claimed the same as exempt in return of income filed? 2. Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal was right in giving a relief on accrual basis when the assessee has been consistently following cash basis of accounting and admitting income on receipt basis?” 4. The learned counsel for the appellant / Revenue 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. 3/4 http://www.judis.nic.in T.C.A.No.415 of 2020 T.S.SIVAGNANAM, J. AND R.PONGIAPPAN, J. Kak 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 framed 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 make a mention to this Court to restore this appeal to be heard and decided on merits. No costs. (T.S.S.,J) (R.P.A.,J) 27.11.2020 Kak Index: Yes / No Internet: Yes / No Speaking Order/Non-Speaking Order To The Income Tax Appellate Tribunal, 'B' Bench, Chennai. T.C.A.No.415 of 2020 4/4 http://www.judis.nic.in