Commissioner Of Income Tax, Central I v. Shri P.sathyanarayanan

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.818 to 827 of 2015 Commissioner of Income Tax,Central I, 108, Mahatma Gandhi Road,Chennai - 600 034. ...Appellant in all appeals VsShri P.Sathyanarayanan ...Respondent in all appeals APPEALS under Section 260A of the Income Tax Act, 1961 ,2000-2001, 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006. TCA No. 818 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.717 (Mds)/2008,dated 21.09.2011 Assessment year 2000-2001, Appeal filed bythe assessee Arising upon the order of the Commissioner ofIncome Tax Appeals I, Chennai, in ITA No.169/06-07, dated07.01.2008 Assessment year 2000-2001 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.819 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.718 (Mds)/2008,dated 21.09.2011 Assessment year 2003-04, Appeal filed bythe assessee Arising upon the order of the Commissioner ofIncome Tax Appeals I, Chennai, in ITA No.172/06-07, dated07.01.2008 Assessment year 2003-04 Against the Search assessmentorder dated 29.12.2006, of the Assistant Commissioner of IncomeTax, Central Circle I (3) Chennai – PAN . TCA No.820 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.719 (Mds)/2008,dated 21.09.2011 Assessment year 2004-05, Appeal filed bythe assessee Arising upon the order of the Commissioner ofIncome Tax Appeals I, Chennai, in ITA No.173/06-07, dated07.01.2008 Assessment year 2004-05 Against the Search assessmentorder dated 29.12.2006, of the Assistant Commissioner of IncomeTax, Central Circle I (3) Chennai – PAN . TCA No.821 of 2015 Arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.891 (Mds)/2008,dated 21.09.2011 Assessment year 1999-2000, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.168/2006-07, dated07.01.2008 Assessment year 1999-2000 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.822 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.892 (Mds)/2008,dated 21.09.2011 Assessment year 2000-2001, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.169/Mds/2006-07, dated07.01.2008 Assessment year 2000-2001 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.823 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.893 (Mds)/2008,dated 21.09.2011 Assessment year 2001-2002, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.170/Mds/2006-07, dated07.01.2008 Assessment year 2001-2002 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.824 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.894 (Mds)/2008,dated 21.09.2011 Assessment year 2002-2003, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.171/Mds/2006-07, dated07.01.2008 Assessment year 2002-2003 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.824 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.894 (Mds)/2008,dated 21.09.2011 Assessment year 2002-2003, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.171/Mds/2006-07, dated07.01.2008 Assessment year 2002-2003 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.825 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.895 (Mds)/2008,dated 21.09.2011 Assessment year 2003-2004, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.172/Mds/2006-07, dated07.01.2008 Assessment year 2003-2004 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.826 of 2015 arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.896 (Mds)/2008,dated 21.09.2011 Assessment year 2004-2005, Appeal filed bythe Revenue Arising upon the order of the Commissioner of Income https://hcservices.ecourts.gov.in/hcservices/ Tax Appeals I, Chennai, in ITA No.173/Mds/2006-07, dated07.01.2008 Assessment year 2004-2005 Against the Searchassessment order dated 29.12.2006, of the Assistant Commissionerof Income Tax, Central Circle I (3) Chennai – PAN . TCA No.827 of 2015 Arising upon the order of the Income TaxAppellate Tribunal, Madras A Bench, in ITA No.897 (Mds)/2008,dated 21.09.2011 Assessment year 2005-2006, Appeal filed bythe Revenue Arising upon the order of the Commissioner of IncomeTax Appeals I, Chennai, in ITA No.174/2006-07, dated 07.01.2008Assessment year 2005-2006 Against the Search assessment orderdated 29.12.2006, of the Assistant Commissioner of Income Tax,Central Circle I (3) Chennai – PAN . We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.G.Baskar, learnedcounsel appearing for the respondent – assessee. 2.These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 21.09.2011 made in ITA.Nos.717 to 719 and 891 to897/Mds/2008 on the file of the Income Tax Appellate Tribunal,Chennai 'A' Bench for the assessment years 2000-01, 2003-04,2004-05 and 1999-2000 to 2005-06. 3.TCA.Nos.818 to 820 of 2015 were admitted on 30.11.2015 onthe following substantial questions of law : “1)Whether, on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in law, in annulling the searchassessments for the assessment years 2000-01, 2003-04 and 2004-05 made under Section 153C read withSection 153A of the Income Tax Act? 2)Whether, on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that satisfaction note is tobe recorded for the purpose of invoking Section 153C https://hcservices.ecourts.gov.in/hcservices/ especially when the assessing officer, who dealtwith the assessment of 'searched person' and that ofthe other 'non-searched person' is one and thesame?" 3.TCA.Nos.818 to 820 of 2015 were admitted on 30.11.2015 onthe following substantial questions of law : “1)Whether, on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in law, in annulling the searchassessments for the assessment years 2000-01, 2003-04 and 2004-05 made under Section 153C read withSection 153A of the Income Tax Act? 2)Whether, on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that satisfaction note is tobe recorded for the purpose of invoking Section 153C https://hcservices.ecourts.gov.in/hcservices/ especially when the assessing officer, who dealtwith the assessment of 'searched person' and that ofthe other 'non-searched person' is one and thesame?" 4.TCA.Nos.821 to 827 of 2015 were admitted on 30.11.2015 onthe following substantial questions of law :“1)Whether, on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in in holding that the belatedReturn of Income filed under Section 153C read withSection 153A is an invalid return and the samecannot be acted upon for the purpose of makeassessment?2)Whether, on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in deleting the additions made by theassessing officer based on the materials seizedduring search and the information availablesubsequent to issuance of notice?" 5.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in the respectivecases is less than the threshold limit. 6. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Assistant Registrar(CCC) cse https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax Appeals I, NungambakkamChennai 34.Chennai 34. 3.The Assistant Commissioner of Income Tax, Central Circle I(3)ChennaiChennai +1 CC to Mr.T.R.Senthilkumar, Advocate sr 73603 +1 CC to Mr.G.Baskar, Advocate sr 73842. TCA.Nos.818 to 827 of 2015 RSK(CO)SP(26/11/2019)