Commissioner Of Income Tax,Central Circle, Chennai-600 034 v. Shri Varghese Eapen,8 (New

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.429 and 430 of 2014and M.P.Nos.1, 1, 2 and 2 of 2014 Commissioner of Income Tax,Central Circle, Chennai-600 034... Appellant in bothAppeals/ Appellant -vs- Shri Varghese Eapen,8 (New No.13) 15[th] Avenue,Harrington Road,Chetpet, Chennai-600 031.PAN; .. Respondent in both Appeals/Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 27.06.2011, made inI.T.A.Nos.1752 & 1753/Mds/2010 on the file of the IncomeTax Appellate Tribunal Bench 'C', Chennai for theassessment years 2007-08 and 2008-09 respectively againstthe order dated 11.06.2010 made in ITA.NOs.194 to196/2009-2010 on the file of the Commissioner of Income TaxAppeals II,chennai 34 for the Assessment Year 2006-2007 to2008-2009 and against the order dated 24.12.2009 made inPAN /GIR NO.AAA PE 0490 J on the file of the AssistantCommissioner of Income Tax, central Circle III (4), chennai34 for the Assessment Year 2008-2009 and against the orderdated 24.12.2009 made in PAN/GIR NO. on the fileof the Assistant commissioner of Income Tax,Central CircleIII(4), chennai 34 for the Assessment Year 2007-08(TCA.429,430/2014). For Appellant:Mr.T.R.Senthil Kumar,(In both Appeals)Senior Standing Counsel :assisted by Ms.K.G.Usharani,Standing Counsel For Respondent :Ms.Sree Lakshmi Valli,(In both Appeals)For Mr.N.Muthukumar ****** COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the Revenue under Section 260A ofthe Income-tax Act, 1961 are directed against the commonorder dated 27.06.2011, made in I.T.A.Nos.1752 &1753/Mds/2010 on the file of the Income Tax AppellateTribunal Bench 'C', Chennai for the assessment years 2007-08 and 2008-09 respectively. 2.The above appeals were admitted on 25.08.2014, on thefollowing substantial questions of law:-“T.C.A.No.429 of 2014:- (i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in upholding theorder of the Commissioner of Income TaxAppeals in deleting the addition made by theassessing authority towards unexplainedcredit amounting to Rs.4,08,000/- u/s 69 ofthe Income Tax Act? (ii) Whether on the facts and in thecircumstances of the case the Tribunal wasright in upholding the order of theCommissioner of Income Tax Appeals who haddeleted the addition made towards capitalgains amounting to Rs.125 Lakhs? (iii) Whether on the facts and in thecircumstances of the case the Tribunal wasright in upholding the order of Commissionerof Income Tax Appeals especially when therewas violation of provisions of Rule 46A (2)of the Income tax Rules then the AssessingOfficer has objected the same and theadditional evidences were admitted withoutrecording the same in writing?T.C.A.No.430 of 2014:- (i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in upholding the order of the Commissioner of Income TaxAppeals in deleting the addition made by theassessing authority towards unexplainedcredit amounting to Rs.6,10,500/- u/s 69 ofthe Income Tax Act? (ii) Whether on the facts and in thecircumstances of the case the Tribunal wasright in upholding the order of Commissionerof Income Tax Appeals especially when therewas violation of provisions of Rule 46A (2)of the Income tax Rules then the AssessingOfficer has objected the same and theadditional evidences were admitted withoutrecording the same in writing?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned StandingCounsel for the appellant – and Ms.Sree Lakshmi Valli,learned counsel for the respondent. order of the Commissioner of Income TaxAppeals in deleting the addition made by theassessing authority towards unexplainedcredit amounting to Rs.6,10,500/- u/s 69 ofthe Income Tax Act? (ii) Whether on the facts and in thecircumstances of the case the Tribunal wasright in upholding the order of Commissionerof Income Tax Appeals especially when therewas violation of provisions of Rule 46A (2)of the Income tax Rules then the AssessingOfficer has objected the same and theadditional evidences were admitted withoutrecording the same in writing?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned StandingCounsel for the appellant – and Ms.Sree Lakshmi Valli,learned counsel for the respondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by theRevenue on account of the low tax effect in terms ofCircular No.17/2019, dated 08.08.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the HighCourt has been increased to Rs.1 Crore. It is furthersubmitted that the tax effect in this case is less than thethreshold limit. 5.In the light of the said submissions, the above taxcase appeals are dismissed on account of the low taxeffect. The substantial questions of law framed are leftopen. In the event the tax effect is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore theappeals to be heard and decided on merits. No costs.Consequently, connected miscellaneous petitions are closed. To 1.THE INCOME TAX APPELLATE TRIBUNAL BENCH 'C', CHENNAI. 2.THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLEIII (4), CHENNAI 34III (4), CHENNAI 34 3.THE COMMISSIONER OF INCOME TAX,CENTRAL APPEALS II,CHENNAI 34CHENNAI 34 +1cc to Ms.Sree Lakshmi Valli , Advocate SR.No. 73054 +1cc to Mr.t.R.Senthil Kumar , Advocate SR.No. 72911T.C.A.Nos.429 and 430 of 2014T.C.A.Nos.429 and 430 of 2014 A.SK(20/11/2019)