IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN WEDNESDAY, THE 4TH MARCH 2009 / 13TH PHALGUNA 1930 ITA.No. 36 of 2008() -------------------- ITA.474/COCH/2006 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: ------------------------------ THE COMMISSIONER OF INCOME TAX, TRIVANDRUM. BY ADV. SRI.JOSE JOSEPH, SC FOR IT RESPONDENT(S): RESPONDENT: -------------------------- SHRI.S.SANDEEP KUMAR, PACHAYIL INDUSTRIES, KADAKKAL. ADV. SRI.O.RAMACHANDRAN NAMBIAR FOR R SRI.GEEN T.MATHEW FOR R THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... I.T. Appeal No.36 of 2008 .................................................................... Dated this the 4th day of March, 2009. JUDGMENT Ramachandran Nair, J. Heard Standing Counsel for the appellant and counsel appearing for the respondent-assessee. Appeal is filed by the Revenue against the order of the Tribunal rejecting their appeal for the reason that tax effect is below the limit that entitles the department to file an appeal before the Tribunal. Even though Standing Counsel submitted that substantial question of law is involved in this case and so much so, it falls under exemption clause, on going through the assessment order itself we find that if at all appeal was entertained by the Tribunal, it has to be again remanded for fresh adjudication in a case where the tax effect is around Rs.65,000/- only. We, therefore, do not find any substantial question of law involved in the appeal filed by the Revenue. Consequently we dismiss the appeal. However, dismissal of appeal should not be treated as our endorsement to the view taken by the Commissioner (Appeals) that failure to issue notice under Section 143 2 (2) is fatal to the income escaping assessment under Section 147 of the Income Tax Act. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms