COMMISSIONER OF INCOME TAX vs. M/S G.V.G. PAPER MILLS PVT L

T.C.A.No.691 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.691 of 2016 Commissioner of Income Tax, 63, Race Course Road, Coimbatore. ... Appellant

Versus M/s. G.V.G. Paper Mills Pvt. Ltd., No.168/2, Sikkandar Batcha Street, Gandhi Nagar, Udumalpet 642 128. (PAN: AAB CG 1438 N)

... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 19.06.2014 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.96/Mds/2014. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel Page 1/4 T.C.A.No.691 of 2016 For Respondent : Mr.S.Sridhar JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 19.06.2014 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.96/Mds/2014, relating to the assessment year 2005-06. 2.By order dated 04.10.2016, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and circumstances of the case, the Appellate Tribunal was right in holding that the reopening was bad in law, without considering Explanation 3 to section 147 of the Income Tax Act? (ii) Whether on the facts and circumstances of the case the Appellate Tribunal was right in law in holding that since four year period has admittedly expired, the reopening of assessment is bad in law without consider sub-section (1) (b) of Section 149 of the Income Tax Act which provides for reopening of such cases?" Page 2/4 T.C.A.No.691 of 2016 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 No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeal 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the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 01.08.2022

Internet : Yes

Index : Yes / No Page 3/4 T.C.A.No.691 of 2016 av R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai. 2. The Commissioner of Income Tax, 63, Race Course Road, Coimbatore. 3. The Deputy Commissioner of Income Tax, Salary Circle I, Coimbatore.