COMMISSIONER OF INCOME TAX vs. UMA RATHI

TCA NO.777 OF 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 28.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN AND THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.NO.777 OF 2019 Commissioner of Income Tax Chennai.

... Appellant Vs. Uma Rathi

... Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961, against the order dated 27.09.2007 in I.T.A.No.2635/Mds/2004 on the file of the Income Tax Appellate Tribunal Madras 'C' Bench for the assessment year 2001-02. For Appellant : Mr.T.Ravikumar Senior Standing Counsel For Respondent : Mr.M.P.Senthilkumar 1/6 http://www.judis.nic.in TCA NO.777 OF 2019 J U D G M E N T (Judgment of the Court was made by N.KIRUBAKARAN, J.)

This Tax Case Appeal has been filed against the order of the Income Tax Appellate Tribunal dated 27.09.2007 passed in I.T.A.No.2635/Mds/2004 allowing the appeal filed by the respondent against the order of the Commissioner of Income Tax (Appeals) by which the appeal filed by the assessee was dismissed. 2. Heard Mr.T.Ravikumar, learned Senior Standing Counsel for the appellant. 3. This Tax Case Appeal is admitted on the following substantial question of law: "1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that unexplained cash credit admitted and offered by the assessee for assessment u/s.68 should be treated as the eligible business profits / income for the purpose of deduction under section 801B?. " 2/6 http://www.judis.nic.in TCA NO.777 OF 2019 4. Mr.T.Ravikumar, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect in this case is less than Rs.1 Crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 Crore. In this case, tax effect is less than Rs.1 Crore and therefore, the appeal has to be dismissed. 5. This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the Circular, which prescribes monetary limit for filing appeal. Paragraph No.2 is usefully extracted as follows: "2. As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: 3/6 http://www.judis.nic.in TCA NO.777 OF 2019 S.No. Appeals / SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000 6.In view of the submissions made by the learned Senior Standing Counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, this Tax Case Appeal is dismissed on account of tax effect. However, the substantial question of law framed is left open. In the event the tax effect is above the 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. [N.K.K., J.] [P.V., J.]

28.11.2019 Index : Yes/No Internet : Yes/No Speaking / Non-speaking order TK

4/6 http://www.judis.nic.in TCA NO.777 OF 2019 To The Commissioner of Income Tax Chennai. 5/6 http://www.judis.nic.in TCA NO.777 OF 2019 N.KIRUBAKARAN, J. AND P.VELMURUGAN, J. TK T.C.A.NO.777 OF 2019 28.11.2019 6/6 http://www.judis.nic.in