Commissioner Of Income Tax, Central-Iii, Chennai-34 v. Shri.m.k.rajagopalan

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 21.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NOS.410 TO 412 OF 2012 Commissioner of Income Tax,Central-III, Chennai-34 ...Appellant/AppellantVsShri.M.K.Rajagopalan ..Respondent/Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 09.5.2012 made in ITA.Nos.2039 to2041/Mds/2011 on the file of the Income Tax Appellate Tribunal,Chennai 'A' Bench respectively for the assessment years 2005-06,2006-07 and 2008-09. T.C.A. 410 to 412/2012:As the against the Assistant Commissioner of Tax, CentralCircle III(4) Chennai PAN No. Assessment year 2008-2009 order dated 14.09.2011 as against the Commissioner ofIncome Tax (Appeals)II Chennai PAN No. Assessmentyear 2008-2009 order dated 14.09.2011 as against the order ofthe Commissioner of Income Tax (Appeals)II Chennai PAN No. Assessment year 2006-2007 order dated 14.09.2011 asagainst the order of the Commissioner of Income Tax (Appeals)IIChennai PAN No. , Assessment year 2005-2006 orderdated 14.09.2011 as against the order of the Assistantcommissioner of Income Tax Central Circle III(4) Chennai PAN No. , Assessment year 2006-2007 order dated 25.06.2010 asagainst the order of the Assistant Commissioner of Income TaxCentral Circle III(4) Chennai PAN Assessment year2005-2006 order dated 25.06.2010 as against the order of theAssistant Commissioner of Income Tax Central Circle III(4)Chennai PAN No. Assessment year 2008-2009 order dated21.06.2010 as against the order of the Government of India,Income Tax Department the Assistant Commissioner of Income Tax,Central Circle III(4) Chennai PAN No. GIR Assessmentyear 2008-2009 order dated 29.12.2009 as against the order ofthe Income Tax Department the Assistant Commissioner of IncomeTax, Central Circle III(4) Chennai PAN/GIR No. Assessment year 2006-2007 order dated 29.12.2009 as against theorder of the Assistant Commissioner of Income Tax, CentralCircle III(4) Chennai PAN No. GIR No. Assessment year2005-2006 order dated 29.12.2009. For Appellant:Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, SC For Respondent:Mr.B.Shyam COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) 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.B.Shyam, 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 dated 09.5.2012 made in ITA.Nos.2039 to 2041/Mds/2011 onthe file of the Income Tax Appellate Tribunal, Chennai 'A' Benchrespectively for the assessment years 2005-06, 2006-07 and 2008-09. 3. The appeals were admitted on 11.12.2012 (TCA.Nos.410 & 411of 2012) and 01.2.2013 (TCA.No.412 of 2012) on the followingsubstantial questions of law :“TCA.Nos.410 & 411 of 2012: Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in canceling the penaltylevied under Section 271(1)(c) when theassessee has not admitted the relevantincome in his original return, but admittedthe same in the return of income filed postsearch ?TCA.No.412 of 2012 : Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in canceling the penaltylevied under Section 271AAA when theassessee has not paid the taxes togetherwith interest in respect of undisclosedincome as stipulated in Sub-Clause (iii) ofSection 271AAA of the Income Tax Act, 1961?” Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in canceling the penaltylevied under Section 271(1)(c) when theassessee has not admitted the relevantincome in his original return, but admittedthe same in the return of income filed postsearch ?TCA.No.412 of 2012 : Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in canceling the penaltylevied under Section 271AAA when theassessee has not paid the taxes togetherwith interest in respect of undisclosedincome as stipulated in Sub-Clause (iii) ofSection 271AAA of the Income Tax Act, 1961?” 4. 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.17/2019 dated 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. 5. 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. s/d- Assistant Registrar(CS V) True Copy Sub-Assistant RegistrarTo 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench.2.The Assistant Commissioner of Income TaxCentral Circle III(4) Chennai3.The Commissioner of Income Tax (APPEals)IIChennai+1 CC to Mr.T.R.Senthilkumar, Advocate sr 71335. TCA.Nos.410 to 412 of 2012 PP(CO)SP(31/10/2019) https://hcservices.ecourts.gov.in/hcservices/