THE COMMISSIONER OF INCOME vs. M/S.G.ABDUL RAHMAN AND CO.,

T.C.A.No.790 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.790 of 2019 The Commissioner of Income Tax – VIII Chennai.

... Appellant Vs M/s.G.Abdul Rahman & Co., No.252C Abdl Hakeem Road, Melvisharam (PAN AAAFG5497P) ... Respondent PRAYER : Appeal under Section 260A of Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “D” Bench, dated 24.07.2009 in ITA.No.167/Mds/2009. For Appellant :Mr.M.Swaminathan J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This Tax Case Appeal has been preferred by the Revenue against the order dated 24.07.2009 in ITA.No.167/Mds/2009. on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the 1/5 http://www.judis.nic.in T.C.A.No.790 of 2019 assessment year 2004-05. 2.The appeal is admitted on the following substantial questions of law : “1.Whether on the facts and in the circumstances of the case the Income-Tax Appellate Tribunal was right in law in dismissing the appeal filed by the revenue on the ground that this is a mere change of opinion of the assessing officer for resorting to the provisions of Section 147/148 of the Income-tax Act, 1961 is valid? 2.Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was right in law in not deciding the matter on merits and the notice was issued under Section 148 in time in accordance with explanation 2(c) of section 147 which clearly apply to the facts of this case?" 3.Mr.M.Swaminathan, 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 2/5 http://www.judis.nic.in T.C.A.No.790 of 2019 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 case has to be dismissed. 4.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the said Circular, which prescribes monetary limit for filing appeal 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: 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 5.In view of the submissions made by the learned counsel appearing on behalf of the appellant and also in view of the Circular 3/5 http://www.judis.nic.in T.C.A.No.790 of 2019 No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, the Tax Case Appeal is dismissed on account of tax effect. However, the substantial questions 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. (NKKJ) (PVJ) 13.11.2019 sai To 1. The Commissioner of Income Tax – VIII Chennai. 2.Income Tax Appellate Tribunal 'D' Bench, Chennai. 4/5 http://www.judis.nic.in T.C.A.No.790 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

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