COMMISSIONER OF INCOME TAX vs. M/S. THE TAMIL NADU STATE

TCA No. 832 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.12.2019 CORAM THE HONOURABLE MR. JUSTICE N. KIRUBAKARAN AND THE HONOURABLE MR. JUSTICE P. VELMURUGAN T.C.A. No. 832 of 2019 Commissioner of Income Tax, Trichy. ..Appellant Vs. M/s. The Tamil Nadu State Transport Corporation (Kumbakonam) Ltd., No.27, Railway Station New Road, Kumbakonam – 612 001. ..Respondent Prayer: Appeal under Section 260A of Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench dated 30.01.2015 in ITA No. 831/Mds/2014. For Appellant :: Mr.M. Swaminathan Senior Standing Counsel For Respondent :: Mr.M. Kaushik 1\8 http://www.judis.nic.in TCA No. 832 of 2019 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 30.01.2015 passed in ITA.No.831/Mds/2014 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year 2009-2010. 2.Aggrieved by the assessment order passed by the Assessing Officer dated 29.12.2011 for the assessment year 2009-2010, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who confirmed the findings of the Assessing Officer, with regard to the above two aspects, by order dated 20.12.2013. Assailing the said order, the assessee preferred an appeal to the Income Tax Appellate Tribunal in ITA No. 831/Mds/2014 and the Tribunal, by the impugned order, set aside the findings of the Commissioner of Income Tax (Appeals) and remanded the matter back to the Assessing Officer to 2\8 http://www.judis.nic.in TCA No. 832 of 2019 decide the issues fresh after affording an opportunity of hearing to the assessee in accordance with law. Against the order of the Appellate Tribunal only, the present appeal has been filed. 3.The appeal is admitted on the following substantial questions of law : “Whether on the facts and circumstances of the case, the Tribunal was right in remitting the case back to the assessing Officer with the direction to decide the issue of Disallowance of payment of permit charges as business expenditure u/s 37,afresh after giving opportunity to the assessee?” 4.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 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 3\8 http://www.judis.nic.in TCA No. 832 of 2019 crore and therefore, the case has to be dismissed. 5.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 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 4\8 http://www.judis.nic.in TCA No. 832 of 2019 Board of Direct Taxes, Delhi, the 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. (NKKJ) (PVJ) 04.12.2019 nv To The Income Tax Appellate Tribunal, Madras “B” Bench. 5\8 http://www.judis.nic.in TCA No. 832 of 2019 N. KIRUBAKARAN,J. AND P. VELMURUGAN,J. nv T.C.A. No. 832 of 2019 6\8 http://www.judis.nic.in TCA No. 832 of 2019 04.12.2019 7\8 http://www.judis.nic.in TCA No. 832 of 2019 8\8 http://www.judis.nic.in