PRINCIPAL COMMISSIONER OF vs. SHRI. MUSTAQ AHMED,

T.C.A.Nos.984, 985 & 987 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.07.2020 CORAM THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM & THE HON'BLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.984, 985 & 987 of 2018 Principal Commissioner of Income Tax Central - I 108, Mahatma Gandhi Road, Chennai. ... Appellant in all the appeals Vs. Shri.Mustaq Ahmed ... Respondent in all the appeals Tax Case Appeals are filed under Section 260A of the Income Tax Act 1961 against the order dated 07.01.2016 made in I.T.A.Nos.1676, 1677 and 1679/Mds/2013 on the file of the Income Tax Appellate Tribunal, Madras “B” Bench, for the assessment years 2007 - 08, 2009 - 10 and 2011 - 12.

For Appellant : Mr.T.R.Senthil Kumar Senior Standing Counsel and Mrs.K.G.Usharani in all the appeals

For Respondent : Mr.R.Sivaraman in all the appeals 1/4 http://www.judis.nic.in T.C.A.Nos.984, 985 & 987 of 2018 Common Judgment

(Judgment was delivered by T.S.SIVAGNANAM.J) We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the appellant and Mr.R.Sivaraman, learned counsel for the respondent. 2. These appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961 are directed against the order dated 07.01.2016 made in I.T.A.Nos.1676, 1677 and 1679/Mds/2013 on the file of the Income Tax Appellate Tribunal, Madras “B” Bench, for the assessment years 2007 - 08, 2009 - 10 and 2011 - 12. 3. The tax case appeals were admitted on 04.01.2019 on the following substantial questions of law : “(i) Whether the Appellate Tribunal is correct in law in holding that the interest under Section 234A is to be charged for every month or part of the month comprised in the period commencing on the day immediately following the expiry of the time allowed in the notice under Section 153A of the Income Tax Act? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the 2/4 http://www.judis.nic.in T.C.A.Nos.984, 985 & 987 of 2018 interest under Section 234B would be leviable only on the tax on the total income determined in the order passed under Section 153A, which exceeds the tax on the total income determined under Sub-Section (1) of Section 143 in response to the notice under Section 153A whereas the provisions of Section 153A do not contemplate processing of return of income under Section 143(1) filed in response to notice under Section 153A of the Income Tax Act, 1961?” 4. The learned Senior Standing Counsel for the appellant submits that the above appeals are not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in these cases are less than the threshold limit. 5. In the light of the said submissions, the above tax case appeals are dismissed on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decided on merits.

(T.S.S.J.,) (V.B.S.J.,) 3/4 http://www.judis.nic.in T.C.A.Nos.984, 985 & 987 of 2018

07.07.2020 T.S.SIVAGNANAM.J., and V.BHAVANI SUBBAROYAN.J., raja raja Index : yes/no Internet : yes/no Speaking Order/Non-Speaking Order To The Income Tax Appellate Tribunal, “B” Bench, Chennai. Tax Case Appeal Nos.984, 985 & 987 of 2018 07.07.2020 4/4 http://www.judis.nic.in