PRINICIPAL COMMISSIONER OF I vs. M/S THE KTM JEWELLERY LTD.,

TCA.No.986 of 2018 In the High Court of Judicature at Madras Dated : 28.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.986 of 2018 Principal Commissioner of Income Tax I, No.63, Race Course Road, Coimbatore - 641 018. ...Appellant Vs M/s.The KTM Jewellery Ltd., No.6, 1st Street, Bharathi Colony, Peelamedu, Coimbatore - 641 004. PAN: AABCK7104P ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 05.02.2016 made in ITA.No.989/MDS/2015 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2011-12. For Appellant : Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani For Respondent : Mr.T.Vasudevan JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel, assisted by Ms.K.G.Usharani, learned counsel appearing for the 1/4 http://www.judis.nic.in TCA.No.986 of 2018 appellant/revenue and Mr.T.Vasudevan, learned counsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 05.02.2016 made in ITA.No.989/MDS/2015 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2011-12. 3.The appeal has been filed by raising the following substantial questions of law : “1.Whether the ITAT is correct in overlooking the fact that the assessee themselves vide letter dated 31.03.2014 accepted the discrepancies in the books of accounts as pointed out by the Assessing Officer and the same was mentioned in the assessment order? 2.Whether the ITAT is correct in law in holding that when the difference in accounts has not been properly reconciled by the assessee this will not have any impact on the profit of the assessee?" " 4.The learned Senior Standing Counsel for the appellant submits that the above appeal is 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 2/4 http://www.judis.nic.in TCA.No.986 of 2018 pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 5.In the light of the said submissions, the above tax case appeal is 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 appeal to be heard and decided on merits. No costs. (T.S.S.J.) (V.B.S.J.) 28.08.2019 cse Speaking (or) Non Speaking Order Index : Yes (or) No To 1.M/s.The KTM Jewellery Ltd., No.6, 1st Street, Bharathi Colony, Peelamedu, Coimbatore - 641 004. 2.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 3/4 http://www.judis.nic.in TCA.No.986 of 2018 T.S.SIVAGNANAM,J. AND V.BHAVANI SUBBAROYAN,J. cse TCA.No.986 of 2018 28.08.2019 4/4 http://www.judis.nic.in