Principal Commissioner Of Income Tax, Central 2 v. Gomathi Radhakrishnan

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16.03.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) Nos.340, 341, 342, 343 and 344 of 2017 Principal Commissionerof Income Tax, Central 2No.108, Mahatma Gandhi RoadChennai. ... Appellant/Appellant in all appealsVs. Gomathi RadhakrishnanNo.931, 11[th] Sector, 69[th] StreetKK Nagar, Chennai.... Respondent/ Respondent in all appeals Tax Case Appeals filed under Section 260A of the IncomeTax Act, 1961 against the common order of the Income TaxAppellate Tribunal 'B' Bench, Chennai dated 29.07.2016 in ITANos.1617, 649, 1078, 682 and 683/Mds/2013. Against the order of the Commissioner of Income Tax(Appeals) II, Chennai dt.6.5.2013, 30.1.2013, 8.2.2013,8.2.13, 8.2.13 and made in ITA.No.82/11-12, 84/11-12, 86/11-12, 85/11-12, 86/11-12 aginst the order of the AssistantCommissioner of Income Tax, Central Circle II(1), Chennai,dt.24.6.2011 in PAN No. /03-04, 06-07, 08-09, 07-08,08-09 against the Assessment order of the Deputy Commissionerof Income Tax, Central Circle II(1), Chennai, dt.31.12.2010for the Assessment Year 2003-04, 2006-07, 2008-09, 2007-08 and2008-09. For Appellant : Ms.K.G.Usha Rani Junior Standing CounselFor Respondent : M/s.A.S.Sriraman & S.SridharJ U D G M E N T(Judgment of the Court was delivered by DR.VINEETKOTHARI,J) These Tax Case Appeals have been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'B' Bench, Chennai, by raisingthe following substantial question of law: https://hcservices.ecourts.gov.in/hcservices/ “ TCA Nos.340 to 342 of 2017(i) Whether on the facts and in the circumstances ofthe case and in law, the Appellate Tribunal wasright in cancelling the penalty levied under Section271(1)(c) of the Income Tax Act? (ii) Whether on the facts and in the circumstancesof the case and in law, in search cases where thereturned income is lower than the assessed income,whether the penalty under Section 271(1)(c) is notattracted automatically in view of the specialprovisions of Explanation 5A to Section 271(1)(c)which are applicable to only search cases? And(iii) Whether on the facts and in the circumstancesof the case the Appellate Tribunal is correct in lawstating that the provisions of Section 271AAA andnot the provisions of Sub-section (1) to Section271AAA read with Explanation to Sub-Section (4) ofthat Section, the provisions of Section 271AAA asapplicable only to the assessment year relevant tothe 'specified previous year'?TCA Nos.343 & 344 of 2017 (i) Whether on the facts and in the circumstances ofthe case, the Appellate Tribunal i s correct in lawin deleting the penalty levied by the AssessingOfficer under Section 271(1)(c) of the Income TaxAct, 1961 attributable to the addition ofRs.40,50,000/- and Rs.94,00,000/- respectively madein the assessment in the case of the assessee, whichwas confirmed by the CIT (A)?” 2. When the matter was taken up for hearing, the learnedStanding Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant cases, the tax effect is said to beless than the monetary limit imposed and therefore, theappeals filed by the Revenue are dismissed as not pressed,keeping open the substantial questions of law fordetermination in an appropriate case. Sd/- Assistant Registrar(CS II) //True Copy// Sub Assistant Registrar To 1.Tbe Income Tax Appellate Tribunal'B' Bench,Chennai. 2.The Commissioner of Income Tax, (A)(C) II,No.108, Mahatma Gandhi RoadChennai. 3.The Assistant Commissioner of Income Tax,Central Circle II(1), Chennai. 3. In the instant cases, the tax effect is said to beless than the monetary limit imposed and therefore, theappeals filed by the Revenue are dismissed as not pressed,keeping open the substantial questions of law fordetermination in an appropriate case. Sd/- Assistant Registrar(CS II) //True Copy// Sub Assistant Registrar To 1.Tbe Income Tax Appellate Tribunal'B' Bench,Chennai. 2.The Commissioner of Income Tax, (A)(C) II,No.108, Mahatma Gandhi RoadChennai. 3.The Assistant Commissioner of Income Tax,Central Circle II(1), Chennai. 4.The Deputy Commissioner of Income Tax,Central Circle II(1), 1[st] Floor, New Building46, M.G.Road, Nungambakkam, Chennai-34.Gj(co)krd 4/9T.C.(A) Nos.340 to 344 of 2017