Commissioner Of Income Tax, Chennai v. Y.v.subramaniam

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI Commissioner of Income Tax,Chennai....AppellantVs. Y.V.Subramaniam...Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, "C" Bench, dated 07.05.2010 inI.T.A.No.1597/Mds/2007 for the assessment year 2002-03 againstthe order of the Assistant Commissioner of Income Tax, CentralCircle 11(4) Nungambakkam, Chennai 34 dated 31/12/2007 in GIRNo/PAN for the assessment year 2002-03 against theorder of the Commissioner of Income Tax(Central), Chennai II,Chennai 34 dated 28/03/2007 in C.No.2744/4/2006-07/C-II forthe assessment year 2002-03. JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) Challenging the order passed by the Income Tax AppellateTribunal, Madras “C” Bench in I.T.A.No.1597/Mds/2007, theRevenue has filed the above appeal. 2.The Assessing Officer completed the assessment underSection 143 (3) on 01.03.2005, assessing a total income ofRs.40,72,410/-. The assessment was done by resorting toSection 263 on 28.03.2007 observing that the source for theinvestment Rs.1.73 crores in immovable property were notverified and that there were huge unsecured loans, were notproperly enquired by the Assessing Officer. The AssessingOfficer had completed the assessment under Section 143 (3)read with Section 263 on 31.12.2007, assessing the totalincome at Rs.1,27,41,000/-. On appeal by the assesseehttps://hcservices.ecourts.gov.in/hcservices/against the order of CIT passed under Section 263 of the Income Tax Act held that the order was passed after makingfull verification and no reasons were given and had given anabrupt finding that assessment order was erroneous insofar asprejudicial to the interest of the revenue and that there wasconfirmation letters available before the Assessing Officerand therefore, the order passed lacks jurisdiction. In thesecircumstances, the Tribunal allowed the appeal filed by theassessee. Aggrieved by the order passed by the Income TaxAppellate Tribunal, the Department filed the above appeal. 3.The above appeal was admitted on the followingsubstantial question of law:“Whether on the facts and in the circumstancesof the case, the Income Tax Tribunal is right insetting aside the order passed under Section 263 ofthe Income Tax Act on the ground that CIT lacksjurisdiction?” 4.The Tribunal, while allowing the assessee's appeal,observed that the assessment order was passed after makingfull verification and the order of the CIT is based on noreason and he has simply given an abrupt finding that theassessment order is erroneous insofar as it is prejudicial tothe interest of the Revenue. Further, the Tribunal observedthat complete details were filed in the form of confirmationletters before the Assessing Office and he has examined andinvestigated the same in its correct perspective. The Tribunalfound no error in the assessment order and also found that theCIT lacks jurisdiction to revise the assessment order inquestion. Ultimately, the Tribunal set aside the order passedby the CIT under Section 263 and restored the order passed bythe Assessing Officer. 5.On a perusal of the order passed by the Tribunal, itis clear that the Tribunal has categorically held that theorder passed by CIT is based on no reason and he has simplygiven an abrupt finding that the assessment order iserroneous. Further, the Tribunal, taking into considerationall the materials available on record, found that the CITlacks jurisdiction to revise the assessment order passed bythe Assessing Officer. When the Tribunal has given acategorical finding with regard to the order passed by theCIT, we do not find any error or irregularity in the orderpassed by the Tribunal. Further, we find no ground much lessany substantial question of law to interfere with the orderpassed by the Tribunal. The appeal is liable to be dismissed.Accordingly, the Tax Case Appeal is dismissed. No costs.Sd/- Assistant Registrar(CS III) //True copy// https://hcservices.ecourts.gov.in/hcservices/va Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai, "C" Bench 2.The Assistant Commissioner of Income Tax, Central Circle 11(4), Nungambakkam, Chennai 34. Central Circle 11(4), Nungambakkam, Chennai 34. 3.The Commissioner of Income Tax, Central , Chennai II, Chennai 34. Central , Chennai II, Chennai 34. +1cc to Mr.M.Swaminathan, Advocate SR.No.9679 T.C.A.No.1049 of 2010NRL(CO)KKV/08/03/2021