Commissioner Of Income Tax, Tirupur v. M/S.cotton Blossom (India) Pvt. Ltd., Coimbatore

In the High Court of Judicature at Madras Dated : 15.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal Nos.496 to 498 of 2012 Commissioner of Income Tax,Tirupur ...Appellant /Respondent in all Tax Case AppealsVsM/s.Cotton Blossom (India) Pvt.Ltd., Coimbatore ...Respondent/Appellantin all Tax Case Appeals Prayer:Tax Case Appeals filed under Section 260A of the IncomeTax Act, 1961 against the common order dated 07.5.2012 made inITA.Nos.1723 to 1725/ Mds/2011 respectively on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for theassessment years from 2003-04 to 2005-06 and against the orderof the Commissioner of Income Tax(A)-II, Coimbatore dated28.07.2011, made in ITA.Nos.576C/09-10, 575C/09-10 and 579C/09-10 respectively for the Assessment year 2003-2004 to 2005-2006and against the order of the Deputy Commissioner of Income TaxCompany Circle, Tiruppur, dated 24.11.2009, made in PANNo./GIR.No.AACCC5046R, for the assessment year 2005-2006 andagainst the order of the Assistant Commissioner of Income TaxCircle-I,Tiruppurdated25.11.2009,madeinPAN.No./GIR.No.AACFC0674L, for the assessment years 2003-2004and 2004-2005 respectively. For Appellant: Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, SCFor Respondent:Mr.Vikram Vijayaraghvan forM/s.Subbaraya Aiyer Padmanabhan 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.VikramVijayaraghavan, 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 07.5.2012 made respectively in ITA.Nos.1723 to 1725/Mds/2011 on the file of the Income Tax Appellate Tribunal,Chennai 'A' Bench for the assessment years from 2003-04 to 2005-06. 3. The appeals were admitted on 23.1.2013 on the followingsubstantial questions of law :“1. Whether, under the facts andcircumstances of the case, the Income TaxAppellate Tribunal is right in holding thatthe reopening of the assessment due tochange of opinion by the Assessing Officerand therefore, the same is bad in law ?2. Whether, under the facts andcircumstances of the case, the Income TaxAppellate Tribunal is right in holding thatthe reopening of the assessment is due tochange of opinion by the Assessing Officer,while on the issue for which reopening wasmade, the Assessing Officer did not form anyopinion in the original assessment ? And3. Whether, under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe reopening of the assessment was due tochange of opinion without noting that theintimation under Section 143(1) is not anassessment and therefore, there is no changeof opinion?” 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 respective 2/3 cases 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. 2/3 cases 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. Sd/- Asst.Registrar /true copy/Sub Asst. RegistrarTo1.The Income Tax Appellate Tribunal, Chennai 'A' Bench.2.The Commissioner of Income-Tax(A)-II,Coimbatore3.The Deputy Commissioner of Income TaxCompany Circle, Tiruppur4.The Accident Commissioner of Income-TaxCircle-I TiruppurTCA.Nos.496 to 498 of 2012mr(co)aa09/09/2020 3/3