Commissioner Of Income Tax I, Chennai v. Ms.c.vinaya Kumari, Hyderabad

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Commissioner of Income Tax I,Chennai ...Appellant /RespondentVsMs.C.Vinaya Kumari, Hyderabad. ...Respondent/Appellant APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 12.6.2009 made in ITA.Nos.1601and 1602/H/2008 on the file of the Income Tax AppellateTribunal, Hyderabad 'B' Bench for the assessment years 2003-04and 2004-05.Against the common order passed by the commissionerof Income Tax(Central)(I/c) Hyderabad. Dated 30.04.2009 made inCIT(c)/II/Ibe Centralization/1/09-10. Against the common order passed by the Commissioner ofIncome-tax (Appeals)-I, Hyderabad dated 30.09.2008 made inITA.No.0034/CC-2, HYD/CIT(A)-I/07-08 and Against the common orders passed by the AssistantCommissioner of Income Tax, Central Circle-2 Hyderabad, dated28.06.2007 made in , dated 28.12.2006 made in PAN/GIRNo. . For Appellant:Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SCFor Respondent:Mr.Venkata Narayanan for M/s.Subbaraya Aiyer Padmanabhan (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.Venkata Narayanan,learned counsel 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 12.6.2009 made in ITA.Nos.1601 and 1602/H/2008 on the fileof the Income Tax Appellate Tribunal, Hyderabad 'B' Bench forthe assessment years 2003-04 and 2004-05. 3. The appeals were admitted on 12.7.2010 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in cancelingthepenaltyofRs.4,48,480/-andRs.4,89,540/- respectively levied underSection 271(1)(c) of the Income Tax Act,1961 based on the incriminating evidencefound during the search conducted in thepremises of the assessee under Section 132of the Act in the form of accountsmaintained in the tally accounting package ?ii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatwhen the assessee was found to have beenmaintaining two sets of accounts, he coulddisown one set of accounts without anyobligation to explain the discrepancieswithin the two sets of accounts and therebyholding that no penalty under Section 271(1)(c) of the Act could be levied forconcealment of income ? And iii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in not holdingthat when there is admission on the part ofthe assessee of concealed income after beingconfronted with the incriminating materialfound during the search, there was no burdencast on the Assessing Officer to prove theconcealmentdisregardingtheseveral judicial rulings on this issue like theMadras High Court's decision in 271 ITR286?” 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.17/2019dated 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. judicial rulings on this issue like theMadras High Court's decision in 271 ITR286?” 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.17/2019dated 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. 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 True CopySub-Assistant RegistrarToThe Income Tax Appellate Tribunal, Hyderabad 'B' Bench. 2.The Commissioner of Income Taxe(Central)(I/c) Hyderabad. 3.The Commissioner of Income tax (Appeals)-I Hyderabad 4.The Assistant Commissioner of Income Tax,Central Circle -2Hyderabad +1 cc to Mr.Subbaraya Aiyar Advocate sr70479 +1 cc to Mr.T.R.Senthil kumar Advocate sr70472 TCA.Nos.548 & 549 of 2010 ln(co)aa23/09/2019 https://hcservices.ecourts.gov.in/hcservices/