Commissioner Of Income Tax I, Chennai v. Shri.c.aswini Dutt, Hyderabad

In the High Court of Judicature at MadrasDated : 19.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.564 to 566 of 2010 Commissioner of Income Tax I,Chennai...Appellant inall the TCAsVs.Shri.C.Aswini Dutt, Hyderabad....Respondent inboth TCAs.564& 565/2010 M/s.Swapna Cinema, Hyderabad....Respondent inTCA.566/2010 APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 12.6.2009 made in ITA.Nos.1599,1600 and 1603/H/ 2008 on the file of the Income Tax AppellateTribunal, Hyderabad 'B' Bench respectively for the assessmentyears 2003-04, 2004-05 and 2003-04. TCA.No.564 of 2010 :against the order of the Commissioner of the Income Tax(Appeals) -I, Hyderabad, dated 29/09/2008 and made inITA.Nos.0037/CC-2, Hyd/CIT(A) -I/07-08, for the assessment year2003-2004 against the order of the Assistant Commissioner ofIncome Tax Central Circle -2 Hyderabad in PAN.No. ,dated 26/06/2007 for the assessment year 2003-04. TCA.No.565 of 2010 : against the order of the Commissioner of Income Tax(Appeals) -I, Hyderabad, dated 29/09/2008 and made inITA.No.0036/CC-5, Hyd/CIT(A)-I/07-08, for the assessment year2004-05, against the order of the Assistant Commissioner ofIncome Tax Central Circle-2, Hyderabad dated 26/06/2007 inPAN.No.ABYPA9074D for the assessment year 2004-05. TCA.No.566 of 2010 : against the order of the Commissioner of Income Tax(Appeals)-I, Hyderabad, dated 01/10/2008 in ITA.No.00038/CC-2,Hyd/CIT(A)-I/07-08 against the order of the Assistant 1/3 Commissioner of Income Tax, Central Circle -2, Hyderabad, dated28/06/2007 in PAN.No. , against the Assessment orderdated 28/12/2006 in PAN./GIR.No. , for the financialyear 2003-04. For Appellant:Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, SCRespondents:served and no appearance 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. 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.1599, 1600 and 1603/H/2008 onthe file of the Income Tax Appellate Tribunal, Hyderabad 'B'Bench respectively for the assessment years 2003-04, 2004-05 and2003-04. 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.40,96,087/-,Rs.40,96,087/-andRs.2,47,460/-respectively levied under Section 271(1)(c)of the Income Tax Act, 1961 based on theincriminating evidence found during thesearch conducted in the premises of theassessee under Section 132 of the Act in theform of seized documents, which revealedunaccounted cash receipts not included inthe return of income ? 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 2/3 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 2/3 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 anyburden on the Assessing Officer to prove theconcealmentdisregardingtheseveraljudicial rulings on this issue like 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. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Hyderabad 'B' Bench.2.The Commissioner of Income Tax(Appeals)-I, Hyderabad.3.The Assistant Commissioner of Income Tax, Central Circle-2, Hyderabad. +2cc to M/s.Subbaraya Aiyar, Advocate SR.No.70480+1cc to M/s.M.Swaminathan, Advocate Sr.No.70426+1cc to M/s.T.R.Senthil Kumar, Advocate Sr.No.70470 AKM/20.11.19/3P-8C / TCA.Nos.564 to 566 of 2010 3/3