Commissioner of Income-tax-I, Tiruchirapalli v. U. Srilakshmi
[Citation -2019-LL-0820-130]

Citation 2019-LL-0820-130
Appellant Name Commissioner of Income-tax-I, Tiruchirapalli
Respondent Name U. Srilakshmi
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 20/08/2019
Assessment Year 2005-06
Judgment View Judgment
Keyword Tags low tax effect • estimate basis • monetary limit • gross profit • rejecting books of account
Bot Summary: Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 23.12.2010 made in ITA.No. 160/Mds/2009 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2005-06. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in deleting the addition under Section 40A(3) on the ground that no single payment exceeded the prescribed limit of Rs.20,000/- even though the Assessing Officer had established that the payment to the same person had been split artificially and shown in the names of fictitious persons iii. Without prejudice to the previous questions, whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that no disallowance under Section 40A(3) could be made even after deleting the gross profit addition made by the Assessing Officer 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. 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 : 20.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.241 of 2011 Commissioner of Income Tax-I, Tiruchirapalli Appellant Vs Smt.U.Srilakshmi, Trichy-3. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 23.12.2010 made in ITA.No.160/Mds/2009 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for assessment year 2005-06. For Appellant: Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SC and Ms.S.Premalatha, SC For Respondent: Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.M.Swaminathan, learned Senior Standing Counsel, assisted by Ms.V.Pushpa and Ms.S.Premalatha, learned Standing Counsel appearing for appellant Revenue and Mr.A.S.Sriraman, learned counsel appearing for respondent assessee. 1/4 TCA.No.241 of 2011 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 23.12.2010 made in ITA. No.160/Mds/2009 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for assessment year 2005-06. 3. appeal was admitted on 11.7.2011 on following substantial questions of law : i. Whether, on facts and circumstances of case, Income Tax Appellate Tribunal was right in holding that Assessing Officer was not justified in rejecting books of accounts in spite of serious defects found and in deleting estimated addition made in assessment ? ii. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in deleting addition under Section 40A(3) on ground that no single payment exceeded prescribed limit of Rs.20,000/- even though Assessing Officer had established that payment to same person had been split artificially and shown in names of fictitious persons ? iii. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that once gross profit addition was made on estimate basis declared profit, no disallowance under Section 40A(3) could be made? And 2/4 http://www.judis.nic.in TCA.No.241 of 2011 iv. Without prejudice to previous questions, whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that no disallowance under Section 40A(3) could be made even after deleting gross profit addition made by Assessing Officer? 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. It is further submitted that tax effect in this case is less than threshold limit. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial questions of law framed 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. No costs. 20.8.2019 RS 3/4 TCA.No.241 of 2011 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS Internet: Yes To Income Tax Appellate Tribunal, Chennai 'D' Bench. TCA.No.241 of 2011 20.8.2019 4/4 Commissioner of Income-tax-I, Tiruchirapalli v. U. Srilakshmi
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