Commissioner Of Income Tax, Central -1, Chennai v. Shri T.r. Pachamuthu

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY T.C.A.Nos.1148 to 1152 of 2010 Commissioner of Income Tax,Central -1,Chennai. ... Appellant in all TCAsv. Shri T.R. Pachamuthu,No.4 & 5, Prakasam Street,Janaki Nagar,Valasaravakkam,Chennai - 600087.... Respondent in all TCAs Appeals preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Chennai, "A" Bench, dated 30.03.2010 inITA.Nos.1673, 1674, 1675, 1683 & 1511/Mds/2007 for theAssessment Years 2002-03, 2003-04, 2004-05 and 2005-06respectively. Against the appellate order passed by thecommissioner of Income Tax (A) dated 30.03.2007 inITA.NO.220/06-07,AssessmentYear2005-2006,219/06-07Assessment Year 2004-2005,218/06-07,Assessment Year 2003-2004,217/06-07,Assessment Year 2002-2003 respectively, and againstthe order passed by the Assistant Commissioner of Income TaxCentral circle1(3),Chennai 34 dated 26.12.2006 PA/GIR NO:HMPP1440N,Assessment Year 2003-2004 & 2002-03,2004-2005,2005-2006 respectively. We have heard Mr.T.R. Senthil Kumar, learned SeniorStanding Counsel for the appellant/Revenue and Mr. G.Baskar,learned counsel for the respondent. 2. These appeals, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 (for short, the Act) are directedagainst the order dated 30.03.2010 made in ITA.Nos.1673,https://hcservices.ecourts.gov.in/hcservices/1674, 1675, 1683 & 1511/Mds/2007 on the file of the Income Tax Appellate Tribunal, Chennai, ''A'' Bench (for brevity, theTribunal) for the Assessment Years Assessment Years 2002-03,2003-04, 2004-05 and 2005-06. 3. In the above appeals, the assessee has raised thefollowing Substantial Questions of Law for consideration: “ (i) Whether on the facts andin the Circumstances of the case, theIncome Tax Appellate Tribunal wasright in upholding the deletion of theadditions towards the principal andinterest in respect of the unexplainedpronote loans stated to be taken onbehalf of M/s.Valliammal Society eventhough the material, being copies ofthe pronotes signed by the assesseediscoveredduringthesearchconstituted a valid piece of evidence,wrongly shifting the onus of proof onthe assessee under Section 132(4A), tothe Assessing Officer, especially whenM/s. Valliammal Society has not ownedup the loans ? (ii) Whether on the facts and inthe Circumstances of the case, theIncome Tax Appellate Tribunal wasright in deleting the additions onaccount of unexplained cash depositsmade by the assessee wrongly assumingavailability of opening cash balanceeven though no accounts have beenmaintained and the assessee has notsatisfactorily explained each depositlinking with specific sourcetherefor, that too by making a wrongreference to para 65 of the Tribunal'sorder in the case of Smt.P.Easwariwhich dealt with some other issue? iii. Whether on the facts and inthe circumstances of the case, theIncome Tax Appellate Tribunal wasright in deleting the addition ofRs.25 lakhs being unexplained cashpaid made for removing encroacherswithoutappreciatingthatthepresumption as per the sale agreementwas that such amount had actually beenpaid and the onus of proving that nosuch payment was made to theencroachers was on the assessee ? ” 4. The learned Senior Standing Counsel appearing for theappellant submits that the above appeals are not pursued bythe Revenue on account of the Low Tax Effect in terms ofCircular No.17/2019 dated 08.08.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the High Courthas been increased to Rs.1 crore. It is further submittedthat the tax effect in respective cases is less than thethreshold limit. 4. The learned Senior Standing Counsel appearing for theappellant submits that the above appeals are not pursued bythe Revenue on account of the Low Tax Effect in terms ofCircular No.17/2019 dated 08.08.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the High Courthas been increased to Rs.1 crore. It is further submittedthat the tax effect in respective cases is less than thethreshold limit. 5. In the light of the said submissions, the above TaxCase Appeals are dismissed on account of the Low Tax Effect.The substantial questions of law framed is left open. In theevent the tax effect in the respective cases is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeals to be heard and decided on merits. Nocosts. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar RjTo THE INCOME TAX APPELLATE TRIBUNAL, CHENNAI “A” BENCH. 2. THE COMMISSIONER OF INCOME TAX (A),CHENNAI. 3.THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE1(3),CHENNAI 34 4 THE COMMISSIONER OF INCOME TAX ,CENTRAL I,CHENNAI. +1cc to Mr.T.R.Senthil Kumar , Advocate SR.No. 24548+1cc to Mr.G.Baskar, Advocate SR.No. 24481T.C.A.Nos.1148 to 1152 of 2010A.SK(29.06.2021)