Madras High Court
The Principal Commissioner Of Income ... vs M/S.Indian Additives Limited on 27 April, 2021
Author: M.Duraiswamy
Bench: M.Duraiswamy, R.Hemalatha
T.C.A.No.270 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 27.04.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R.HEMALATHA
T.C.A.No.270 of 2021
The Principal Commissioner of Income Tax,
Central Circle – 2(2), Chennai – 34. ... Appellant
Vs.
M/s.Indian Additives Limited
Express Highway, Manali,
Chennai – 600 068. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act, 1961,
against the order of the Income Tax Appellate Tribunal, Madras, "A"
Bench, dated 06.06.2017 in I.TA.No.649/Mds/2017 Assessment Year
2005-06.
For Appellant : Mr.Karthik Ranganathan,
Senior Standing Counsel
For Respondent : Mr.G.Baskar
JUDGMENT
Page 1/5
http://www.judis.nic.in T.C.A.No.270 of 2021 (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned Senior Standing Counsel for the appellant/Revenue and Mr.G.Baskar, learned counsel for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 06.06.2017 made in I.TA.No.649/Mds/2017 on the file of the Income Tax Appellate Tribunal, Chennai, "A" Bench (for brevity, the Tribunal) for the Assessment Year 2005-06.
3.The appellant–Revenue has raised the following substantial questions of law:
“1)Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right in deleting the penalty levied u/s 271AA of the Act?Page 2/5
http://www.judis.nic.in T.C.A.No.270 of 2021
2)Whether on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal was right in holding that when there was no adjustment in the Arms Length price, penalty proceedings u/s 271AA is not warranted?
3)Whether the provisions of Section 92D and Rule 10B are mandatory or directory?”
4.The learned 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 08.08.2019 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 Appeal is dismissed as withdrawn on account of the Low Tax Effect. The substantial questions of law framed are left open. In the event the tax effect in this case is above the threshold limit fixed in the said Page 3/5 http://www.judis.nic.in T.C.A.No.270 of 2021 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.
Index : Yes/No [M.D., J.] [R.H., J.]
Internet : Yes 27.04.2021
va
To
The Income Tax Appellate Tribunal, Chennai, "A" Bench Page 4/5 http://www.judis.nic.in T.C.A.No.270 of 2021 M.DURAISWAMY, J.
and R.HEMALATHA, J.
va T.C.A.No.270 of 2021 27.04.2021 Page 5/5 http://www.judis.nic.in