COMMISSIONER OF INCOME TAX vs. B.SELVARAJ

TCA NO.971 OF 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 27.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN AND THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.NO.971 OF 2019 The Commissioner of Income Tax Coimbatore.

... Appellant Vs. B.Selvaraj

... Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961, against the order dated 23.08.2011 in I.T.A.No.947/Mds/2010 on the file of the Income Tax Appellate Tribunal Madras 'C' Bench for the assessment year 2007-08. For Appellant : Mr.T.R.Senthil Kumar Senior Standing Counsel for Mr.N.V.Balaji For Respondent : Mr.A.S.Sriraman 1/6 http://www.judis.nic.in TCA NO.971 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 23.08.2011 passed in I.T.A.No.947/Mds/2010 dismissing the appeal filed by the Department of Revenue against the order of the Commissioner of Income Tax (Appeals) by which the appeal filed by the assessee was partly allowed. 2. Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the appellant and Mr.A.S.Sriraman, learned counsel for the respondent. 3. This Tax Case Appeal is admitted on the following substantial questions of law: "1. Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that there was no violation of the provisions of 2/6 http://www.judis.nic.in TCA NO.971 OF 2019 Section 40A(3) of the Income Tax Act ? 2. Whether on the facts and circumstances of the case, Income Tax Appellate Tribunal was right in not considering fact that the payments were actually made during the relevant assessment year 2007-08 when the amended provision had come into force and that the payments were made in violation of the provisions of Section 40A(3) ?." 4. Mr.T.R.Senthil Kumar, 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 3/6 http://www.judis.nic.in TCA NO.971 OF 2019 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: 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 4/6 http://www.judis.nic.in TCA NO.971 OF 2019 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 questions of law framed are 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.]

27.11.2019 Index : Yes/No Internet : Yes/No Speaking / Non-speaking order TK

To The Commissioner of Income Tax Coimbatore. 5/6 http://www.judis.nic.in TCA NO.971 OF 2019 N.KIRUBAKARAN, J. AND P.VELMURUGAN, J. TK T.C.A.NO.971 OF 2019 27.11.2019 6/6 http://www.judis.nic.in