Principal Commissioner Of Income Tax Central 1 v. J.karthikeyan

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16.8.2018 CORAM THE HON'BLE MR.JUSTICE HULUVADI G. RAMESHANDTHE HON'BLE MR.JUSTICE K.KALYANASUNDARAM Tax Case Appeal Nos.505 & 506 of 2018 Principal Commissioner of Income Tax Central 1No.108, Mahatma Gandhi RoadAppellant inChennai...both TCAs.Vs.J.Karthikeyan..Respondent inboth TCAs. Tax Case Appeals filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 16.11.2017 in ITANos.904/Mds/2017 and 905/Mds/2017 respectively against theorder of Income Tax Appellate Tribunal 'D' Bench Chennai dated16.11.2017 in ITA.Noss.899,900,901,902,903,904,905/mds/2017and against the order of Commissioner of Income Tax (Appeals)18, Chennai 34 dated 5.1.2017 in ITA.No.869 to 870/15-16 andITA.864 to 868/15-16 and arising out of the assessment orderof Asst. Commissioner of Income Tax, Central circle -1(1)Chennai dated 31.3.2015 in pan No. . For Appellant : Mr.T.R.Senthil Kumar Standing Counsel (in both cases) J U D G M E N T(Delivered by Huluvadi G.Ramesh,J) This Tax Case Appeals have been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, Madras Madras 'D' Bench,Chennai, dated 16.11.2017 in ITA Nos.904/Mds/2017 and905/Mds/2017 respectively, by raising the followingsubstantial questions of law: "(i) Whether the Appellate Tribunal isjustified in cancelling the penalty when theassessee has not complied with the conditions laid https://hcservices.ecourts.gov.in/hcservices/ down in sub-section 2(ii) of Section 271AAA of theIncome Tax Act without ascertaining the fact thatthe assessee has not paid total tax, together withinterest, on the undisclosed income? and(ii) Whether the Appellate Tribunal isjustified in cancelling the penalty when theassessee has not complied with the conditions laiddown in sub-section 2(iii) of Section 271AAA ofthe Act, without ascertaining the fact that theassessee has not explained the manner of earningof undisclosed income with evidence in substantialmanner?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.3/2018 dated 11.7.2018 wherein it is stipulatedthat appeals shall not be filed/pursued by the Departmentbefore the High Court in cases where the tax effect does notexceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the appeals aredismissed as not pressed, preserving the substantial questionsof law for determination in an appropriate case. Sd/-- Assistant Registrar(CS IX) //True Copy// kpl Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 'D' Bench, Chennai. 2.The Commissioner of Income Tax Appeals(18) Chennai 34 Chennai 34 3.The Assistant Commissioner of Income Tax Central Cricle -1(1), Chennai Central Cricle -1(1), Chennai 4.The Assistant Registrar Income Tax Appellate Tribunal, III Floor Rajaji Bhavan, Basent Nagar, Chennai-90 Income Tax Appellate Tribunal, III Floor Rajaji Bhavan, Basent Nagar, Chennai-90 5.The Principal Commissioner of Income Tax Central I No.108, Mahatma Gandhi Road, Chennai No.108, Mahatma Gandhi Road, Chennai +1cc to Mr.T.R.Senthil Kumar, Advocate SR.NO.56661 GMR(CO)sm:18.9.2018TCA Nos.505 & 506 of 2018.