Commissioner Of Income Tax Central Ii, Chennai v. Mr.v.ramadoss Chettiar

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 03.12.2018 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.445 of 2010 Commissioner of Income Tax Central II, Chennai. .... AppellantVs. Mr.V.Ramadoss Chettiar No.68-A Junction Road,Virudhachalam, Cuddalore – 607 001. .... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'C' Bench, Chennai, dated 09.09.2009 made in IT(SS)A No.62/Mds/2008 for the block period 01.04.1996 to22.01.2003 against the order dated 19/03/2008 made in A.NO.CIT(A)/CHE/182/07-08 passed by the Commissioner of Income Tax(Appeals)II, Chennai and against the order dated 31/12/2007 madeGIR.NO.AABPR6390D passed by the Deputy Commissioner of IncomeTax, Central circle II(5)(I/C) chennai 34 for the assessmentyear 01/04/96 to 22/01/2003 and against the order dated24/11/2006 passed by the Commissioner of Income Tax, Chennai II,Chennai and against the order dated 31/01/2005 passed by theAssistant Commissioner of Income Tax, Central circle II(5),chennai, and against the order dated 27/02/2008 passed by theIncome Tax Appellate Tribunal, Chennai Bench “c” madras Benchand against the order dated 28/11/06 made in A.NO.CIT(A)/CHE/15/06-07 passed by the Commissioner of Income Tax(Appeals)II, Chennai 34 for the assessment year 2003-04 and against theorder dated 09/03/2006 passed by Deputy Commissioner of IncomeTax, Central Circle II(5), Chennai. ----- For Appellant : Mrs.K.G.Usharani for Mr.T.R.Senthil Kumar Sr. Standing Counsel For Respondent : No appearance----- https://hcservices.ecourts.gov.in/hcservices/ J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, Madras 'C' Bench, Chennai, dated09.09.2009 made in IT(SS)A No.62/Mds/2008 for the block period01.04.1996 to 22.01.2003 by raising the following substantialquestions of law: "(1) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in dismissing the Revenue'sappeal against the order of the Commissioner ofIncome Tax (Appeals) deleting the addition ofRs.21,93,387/- being unaccounted excess stock foundduring the search/survey in the residential andbusiness premises of the assessee on the ground thatthe Tribunal has already quashed the order of theCommissioner of Income Tax under section 263 and theimpugned assessment order was only consequential tothe said order under 263? (2) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in holding that the addition madeon the basis of material found during the survey, inthe block assessment was not sustainable, withoutappreciating that in the assessee's case there wereboth search and survey conducted simultaneously andthe survey was very much part of the searchoperation?(3) Whether on the facts and in thecircumstances of the case the Income Tax AppellateTribunal was right in holding that the addition onaccount of excess stock found was not sustainable,following the decision of the Madras High Court in284 ITR 220, without noticing the difference infacts, namely, in the assessee's case, the searchand survey operation was conducted simultaneously indifferent premises and the survey was conducted aspart of the search operation?” 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the appeal is dismissed asnot pressed, preserving the substantial questions of law fordetermination in an appropriate case. Sd/- Assistant Registrar(CS IX) //True Copy// Sub Assistant RegistrarTo1.The Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai.2.The Commissioner of Income Tax(Appeals)II, Chennai3.The Deputy Commissioner of Income Tax,Central Circle II(5)(I/C), Chennai.4.The Assistant Commissioner of Income Tax,Central Circle II(5), Chennai.5.The Commissioner of Income Tax(Appelas)-II,Chennai 34.TCA No.445 of 2010SAI(CO)NR 24/12/2018