COMMISIONER OF INCOME TAX vs. M/S SAKTHI FABRICS

TCA.No.557 of 2015 In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.557 of 2015 Commissioner of Income Tax, No.63, Race Course Road, Coimbatore. ...Appellant Vs M/s.Sakthi Fabrics, No.10/1, Kathir Nagar, 8th Street, Behind DSK Hospitals, Kangeyam Road, Tirupur - 641 604. PAN: AAQFS4648L ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 20.02.2015 made in ITA.No.1729/MDS/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2009-10. For Appellant : Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani For Respondent : Mr.N.V.Balaji JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel, assisted by Ms.K.G.Usharani, learned counsel appearing for the 1/4 http://www.judis.nic.in TCA.No.557 of 2015 appellant/revenue and Mr.N.V.Balaji, learned counsel appearing 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 20.02.2015 made in ITA.No.1729/MDS/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2009-10. 3.The appeal was admitted on 22.07.2015 on the following substantial questions of law : “1.Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in cancelling penalty levied u/s.271(1)(c) of the Income Tax Act relying on the earlier judgment of the Hon'ble Supreme Court in the case of CIT vs. S.Khader Khan Son? 2.Whether on the facts and circumstances of the case the Appellate Tribunal ought to have uphold the penalty levied u/s.271(1)(c) of the Income Tax Act relying on the later judgment of the Hon'ble Supreme Court in the case of MAK Data (P) Ltd., vs. CIT? 3.Whether on the facts and circumstances of the case the Appellate Tribunal was right in law in cancelling penalty levied u/s.271(1)(c) of the Act without considering the letter dated 22.12.2011 voluntarily offered by the assessee the undisclosed income during the said financial year?" 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 2/4 http://www.judis.nic.in TCA.No.557 of 2015 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. 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 the appeal to be heard and decided on merits. No costs. (T.S.S.J.) (V.B.S.J.) 27.08.2019 cse Speaking (or) Non Speaking Order Index : Yes (or) No To 1.M/s.Sakthi Fabrics, No.10/1, Kathir Nagar, 8th Street, Behind DSK Hospitals, Kangeyam Road, Tirupur - 641 604. 2.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 3/4 http://www.judis.nic.in TCA.No.557 of 2015 T.S.SIVAGNANAM,J. AND V.BHAVANI SUBBAROYAN,J. cse TCA.No.557 of 2015 27.08.2019 4/4 http://www.judis.nic.in