TCA.No.885 of 2014 In High Court of Judicature at Madras Dated : 18.06.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.885 of 2014 Commissioner of Income Tax, Central Circle III, Chennai. ...Appellant -vs- M/s.RV Steels Private Limited, 4/2, Second Street, B.N.Road, T.Nagar, Chennai-600 017. PAN: AAACR2457B ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 31.05.2011 made in M.P.No.43/Mds/2011 in I.T.A.No.2358/Mds/2007 on file of Income Tax Appellate Tribunal 'D' Bench, Chennai for assessment year 2004-05. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel & Ms.K.G.Usha Rani, Standing Counsel For Respondent : Mr.R.Sivaraman 1/5 http://www.judis.nic.in TCA.No.885 of 2014 Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel and Ms.K.G.Usha Rani, learned Standing Counsel appearing for appellant- Revenue and Mr.R.Sivaraman, learned counsel for respondent-assessee. 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 31.05.2011 made in M.P.No.43/Mds/2011 in I.T.A.No.2358/Mds/2007 on file of Income Tax Appellate Tribunal 'D' Bench, Chennai for assessment year 2004-05. 3. appeal was admitted on 12.01.2015 on following substantial questions of law:- 1) whether on facts and in circumstances of case Income Tax Appellate Tribunal was correct in holding that revenue raised facts and observations in miscellaneous petition which were not rectifiable u/s.254 (2) of Income Tax Act despite fact that all were based upon findings out of extensive investigation done by assessing officer? 2) Whether on facts and in circumstances of case Income Tax Appellate Tribunal was right in holding that addition made under Section 68 of Income Tax 2/5 http://www.judis.nic.in TCA.No.885 of 2014 Act, 1961 being unexplained cash credit amounting to Rs.1,95,93,657/- was to be deleted. 3) Whether on facts and in circumstances of case Income Tax Appellate Tribunal was right in presuming that assessee provided complete names and addresses of parties extending cash credits when investigation of assessing officer showed that they were all non-existent? 4) Whether on facts and in circumstances of case Income Tax Appellate Tribunal was correct in presuming that case credits from M/s.Divya Traders, M/s.Divya cements and M/s.Kalin Industries were genuine only because they were received through brokers and through cheques despite fact that they were found to be bogus parties during investigation 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. 3/5 http://www.judis.nic.in TCA.No.885 of 2014 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. (T.S.S., J.) (P.S.N., J.) 18.06.2020 Internet: Yes To Income Tax Appellate Tribunal 'D' Bench, Chennai. abr 4/5 http://www.judis.nic.in TCA.No.885 of 2014 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA, J. abr TCA.No.885 of 2014 18.06.2020 5/5 http://www.judis.nic.in Commissioner of Income-tax, Central Circle III, Chennai v. RV Steels Private Limited