The Principal Commissioner of Income-tax, Central-I, Chennai v. Kaivalya Entertainment Pvt. Ltd
[Citation -2019-LL-0813-49]

Citation 2019-LL-0813-49
Appellant Name The Principal Commissioner of Income-tax, Central-I, Chennai
Respondent Name Kaivalya Entertainment Pvt. Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 13/08/2019
Assessment Year 2008-09
Judgment View Judgment
Keyword Tags low tax effect • monetary limit
Bot Summary: Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 27.7.2017 made in ITA.No. 1148/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras 'A' Bench for the assessment year 2008-09. The Revenue has filed this appeal by raising the following substantial questions of law : i. Whether the Tribunal is correct in law in holding that invocation of the provisions of Section 153C of the Income Tax Act and consequent assumption of jurisdiction and passing the assessment order under Section 143(3) read with Section 153A by virtue of such jurisdiction is bad in law ii. 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. 565 of 2019 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS It is further submitted that the tax effect in this case is less than the threshold limit, as it is Rs.81.46 lakhs. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. 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.


In High Court of Judicature at Madras Dated : 13.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.565 of 2019 Principal Commissioner of Income Tax, Central I, Chennai ...Appellant Vs M/s.Kaivalya Entertainment Pvt. Ltd., Chennai-18. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 27.7.2017 made in ITA.No.1148/Mds/2015 on file of Income Tax Appellate Tribunal, Madras 'A' Bench for assessment year 2008-09. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC Judgment was delivered by T.S.Sivagnanam,J We have elaborately heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel, assisted by Ms.K.G.Usharani, learned Junior Standing Counsel appearing for appellant - Revenue. 1/4 TCA.No.565 of 2019 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 27.7.2017 made in ITA.No. 1148/Mds/2015 on file of Income Tax Appellate Tribunal, Madras 'A' Bench for assessment year 2008-09. 3. Revenue has filed this appeal by raising following substantial questions of law : i. Whether Tribunal is correct in law in holding that invocation of provisions of Section 153C of Income Tax Act and consequent assumption of jurisdiction and passing assessment order under Section 143(3) read with Section 153A by virtue of such jurisdiction is bad in law ? ii. Whether Appellate Tribunal is correct in law in relying on wording imported into provisions of Section 153C by Finance (No.2) Act, 2014 and applying retrospectively for assessment year 2008-09, even though amendment to provisions of Act is prospectively with effect from 01.10.2014 ? iii. Whether Appellate Tribunal has power to read down amended provisions of Section 153C as amended with effect from 2014 and to invoke same for amendment year 2008- 09 ? 2/4 http://www.judis.nic.in TCA.No.565 of 2019 iv. Whether Tribunal is correct in law in holding that assessment order under Section 143(3) read with Section 153A on 31.12.2013 by invoking provisions of Section 153C is only review of earlier assessment passed under Section 143(3) on 13.12.2010 and is impermissible under scheme of Act by ignoring fact that Assessing Officer has mandate of provisions of Section 153A to assess/re-assess total income wherever provisions of Section 153C of Act were invoked? And v. Whether Appellate Tribunal is correct in law in relying upon judgments delivered in case of Kalyanji Mavji & Co. Vs. CIT [reported in (1976) 102 ITR 287 (SC)] and CIT Vs. Kelvinator of India Ltd. [reported in (2010) 320 ITR 561 (SC)], which are rendered in context of reopening of assessment under Section 147 whereas present order was passed under Section 153A read with Section 143(3) by invoking provisions of Section 153C, which are different and distinguishable from provisions of Section 147 of Income Tax Act, 1961? 4. learned Senior Standing Counsel for appellant submits that above appeal is not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. 3/4 TCA.No.565 of 2019 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS It is further submitted that tax effect in this case is less than threshold limit, as it is Rs.81.46 lakhs. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial questions of law raised are left open. In event tax effect is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeal to be heard and decided on merits. 13.8.2019 Internet: Yes To Income Tax Appellate Tribunal, Madras 'A' Bench. TCA.No.565 of 2019 4/4 Principal Commissioner of Income-tax, Central-I, Chennai v. Kaivalya Entertainment Pvt. Ltd
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