TCA.No.606 of 2019 In High Court of Judicature at Madras Dated : 18.08.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.606 of 2019 Principal Commissioner of Income Tax 6 121, Mahatma Gandhi Road, Chennai 600 034. Appellant -vs- M/s.Space N Place Promoters P. Ltd., No.18, VV Koil Street, Periamet, Chennai 600 003. PAN: AAKCS0817N ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 21.03.2019 in ITA.No.1665/Chny/2018 on file of Income Tax Appellate Tribunal, Madras 'D' Bench for assessment year 2011-12. For Appellant : Mr.J.Narayanasamy Standing Counsel For Respondent : Mr.R.Sivaraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.J.Narayanasamy, learned Standing Counsel appearing for appellant and Mr.R.Sivaraman, learned counsel appearing for respondent. 1/4 http://www.judis.nic.in TCA.No.606 of 2019 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 is directed against order dated 21.03.2019 in ITA.No.1665/Chny/2018 on file of Income Tax Appellate Tribunal, Madras 'D' Bench for assessment year 2011-12. 3. appeal was filed by raising following substantial questions of law: 1.Whether on facts and circumstances of case and in law, Hon'ble Tribunal was right in holding that cash transactions in current account could not be considered as loan or advances so as to attract provisions of Section 269SS of Income Tax Act, 1961? 2.Whether on facts and circumstances of case and in law, Hon'ble Tribunal ought to have followed decision of Division Bench of Hon'ble Madras High Court in case of Vasan Healthcare (P) Ltd., vs. Addl. CIT. (103 taxmann.com 26) dated 05.02.2019, whereby in similar set of facts and circumstances, Hon'ble Madras High Court had ruled in favour of Revenue by holding that assessee-company had accepted cash remittances in contravention of provisions of section 269SS of Act and had thus exposed themselves to levy of penalty under Section 271D of Act? 2/4 http://www.judis.nic.in TCA.No.606 of 2019 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. (T.S.S., J.) (V.B.S, J.) 18.08.2020 Internet: Yes cse To Income Tax Appellate Tribunal, Madras 'D' Bench 3/4 http://www.judis.nic.in TCA.No.606 of 2019 T.S.SIVAGNANAM, J. AND V.BHAVANI SUBBAROYAN, J. cse TCA.No.606 of 2019 18.08.2020 4/4 http://www.judis.nic.in Principal Commissioner of Income-tax 6, Chennai v. Space N Place Promoters P. Ltd