Commissioner of Income-tax-I, Chennai v. UVW Apparels (P) Ltd - 2019-LL-0820-131

Citation	2019-LL-0820-131
Appellant Name	Commissioner of Income-tax-I, Chennai
Respondent Name	UVW Apparels (P) Ltd.
Court	HIGH COURT OF MADRAS
Relevant Act	Income-tax
Date of Order	20/08/2019
Assessment Year	2001-02
Judgment	View Judgment
Keyword Tags	commission received • low tax effect • monetary limit • excess claim • claim of deduction
Bot Summary:	1372/Mds/2008 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2001-02. The appeal was admitted on 02.8.2011 on the following substantial questions of law : i. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the Assessing Officer could not rectify the intimation under Section 143(1) wherein the commission received of Rs.40,57,920/- was omitted to be reduced from the profits of business while computing the deduction under Section 80HHC read with Explanation thereto, without appreciating the amendment under Section 154(1)(b) made with effect from 01.6.1999 and ii. Without prejudice to the preceding question, whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in not upholding the order of the Assessing Officer under Section 154 at least to the extent of the excess claim for 2/4 TCA.No. 253 of 2011 deduction under Section 80HHC made in the return, as admitted in the revised computation by the assessee in the reply to the notice under Section 154 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.253 of 2011 Commissioner of Income Tax-I, Chennai ...Appellant Vs M/s.UVW Apparels (P) Ltd., Chennai-17 Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 23.3.2009 made in ITA.No.1372/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2001-02. For Appellant: Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SC For Respondent: Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyer Padmanabhan Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.M.Swaminathan, learned Senior Standing Counsel, assisted by Ms.V.Pushpa, learned Standing Counsel appearing for appellant Revenue and Mr.R.Venkatanarayanan, learned counsel appearing 1/4 TCA.No.253 of 2011 for respondent assessee. 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 23.3.2009 made in ITA.No. 1372/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment year 2001-02. 3. appeal was admitted on 02.8.2011 on following substantial questions of law : i. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that Assessing Officer could not rectify intimation under Section 143(1) wherein commission received of Rs.40,57,920/- was omitted to be reduced from profits of business while computing deduction under Section 80HHC read with Explanation (baa) thereto, without appreciating amendment under Section 154(1)(b) made with effect from 01.6.1999 ? and ii. Without prejudice to preceding question, whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in not upholding order of Assessing Officer under Section 154 at least to extent of excess claim for 2/4 TCA.No.253 of 2011 deduction under Section 80HHC made in return, as admitted in revised computation by assessee in reply to notice under Section 154 ? 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 http://www.judis.nic.in TCA.No.253 of 2011 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS Internet: Yes To Income Tax Appellate Tribunal, Chennai 'C' Bench. TCA.No.253 of 2011 20.8.2019 4/4 Commissioner of Income-tax-I, Chennai v. UVW Apparels (P) Ltd

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