Commissioner Of Income-Tax,Chennai v. Dr.c.nagarajan

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.504 of 2014 Commissioner of Income-tax,Chennai. ... Appellant -vs- Dr.C.Nagarajan,No.84, New No.141, Peters Road,Royapettah, Chennai-600 014. ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalChennai “D” Bench, dated 16.04.2013 in I.T.A.No.200/Mds/2013,for the assessment year 2008-09. Against the order of the Commissioner of Income Tax(Appeals)IX, Chennai 34, order dated 31.10.2012 in ITANo.103/10-11 for the Assessment Year 2008-09 and against theorder of the Assistant Commissioner of Income Tax BusinessCircleIX,Chennai,orderdated28.12.2010inPAN/GIRNO.ABGPR6878J for the Assessment Year 2008-09. For Appellant: Mr.M.Swaminathan, Senior Standing Counsel and Ms.V.Pushpa, Junior Standing Counsel For Respondent : No Appearance JUDGMENT(Delivered by T.S.Sivagnanam, J.) This appeal, by the appellant/Revenue, is directed againstthe order dated 16.04.2013, passed by the Income Tax AppellateTribunal Chennai “D” Bench, in I.T.A.No.200/Mds/2013 for theassessment year 2008-09. https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mr.M.Swaminathan, learned Senior Standing Counseland Ms.V.Pushpa, learned Junior Standing Counsel for the Revenue. 3.The above appeal has been admitted on 13.08.2014, on thefollowing substantial questions of law:- “(i) Whether the Tribunal was justified inaccepting the assessee's plea overlooking theprovisions of Section 69-C of the Income Tax Actin relation to the transaction for the year 2008-09 in a case of unexplained expenditure supportedby spot enquiry report, which showed that paymentsmade were not found to be genuine. (ii) Whether on the facts and circumstancesof the case, the Tribunal was right in decidingthe appeal of the appellant on the basis of eventsin the subsequent assessment year, particularlywhen the principle of res judicata is notapplicable to income tax proceedings and eachassessment year is separate and distinct.(iii) Whether on the facts and circumstancesof the case, the Tribunal was correct indismissing the appellant's appeal withoutconsidering the well settled position of law thatan assessment for a particular year is final andconclusive between the parties only in relation tothat year and decisions given in an assessment fora particular year are not binding on either theappellant of the defendant in a subsequent year.” 4.We have perused the order of assessment as well as theorder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis appeal in view of the low tax effect. Hence, this appealis dismissed and the substantial questions of law, framed forconsideration, are left open. The Revenue is at liberty to seekfor restoration of appeal if at a later point of time, it is https://hcservices.ecourts.gov.in/hcservices/ found that the tax effect is above the threshold limit or tofall under the exceptional clauses mentioned in the Circular.No costs. 5.Thus, for the above reasons, the Revenue cannot pursuethis appeal in view of the low tax effect. Hence, this appealis dismissed and the substantial questions of law, framed forconsideration, are left open. The Revenue is at liberty to seekfor restoration of appeal if at a later point of time, it is https://hcservices.ecourts.gov.in/hcservices/ found that the tax effect is above the threshold limit or tofall under the exceptional clauses mentioned in the Circular.No costs. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar(abr)To1. The Income Tax Appellate Tribunal Chennai “D” Bench,Chennai.2. The Commissioner of Income Tax(Appeals)IX, Chennai 34.3. The Assistant Commissioner of Income Tax Business circle IX,Chennai.+1 cc to Mr.M.Swaminathan, Advocate Sr.No.76144T.C.A.No.504 of 2014RV(CO)CSL/18.12.2018