Principal Commissioner Of Income Tax Central 2 v. M/S.rmg Benefit Fund Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN Principal Commissioner of Income Tax Central 2,No.108, Mahatma Gandhi Road,Chennai 600 034. ... Appellant in all appeals Vs M/s.RMG Benefit Fund Ltd.,No.38, Jeenis Road, Saidapet,Chennai - 620 015.PAN: AAACR 5172 K ...Respondent in all appeals COMMON PRAYER: Tax Case Appeals filed under Section 260A ofIncome Tax Act, 1961 against the order dated 14.06.2018 inI.T.A.Nos.634,629,630,633,631,628,632/Chny/2018 on the file ofthe Income Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2014-2015, 2009-2010, 2010-2011, 2013-2014,2011-2012, 2008-2009, 2012-2013 respectively against the order dated 20.12.2017 in ITA Nos.50/17-18, andITA Nos.47, 46, 45, 48, 49 and 51/17-18 on the file of theCommissioner of Income Tax (Appeals)18, 46 Mahatma Gandhi Road,Nungambakkam Chennai-34 for the Assessment Years 2008-2009 to2014-15 against the order dated 23316 in G.I.No/PA No.AAACR5172Kon the file of the Deputy Commissioner of Income Tax CentralCircle 2(1), Investigation Wing Room No.122 1st Floor New No.46,MG Road, Chennaiu-34 for the Assessment Year 2008-09. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel. For Respondent : Mr.M.P.Senthil Kumar. C O M M O N J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) These tax case appeals have been filed against the order ofthe Income Tax Appellate Tribunal dated14.06.2018 inI.T.A.Nos.628 to 634/Chny/2018 in allowing the appeals filed bythe assessee against the order of the Commissioner of Income Tax(Appeals), Chennai in which the appeal filed by the assessee waspartly allowed. 2.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the appellant and Mr.M.P.Senthil Kumar, learnedCounsel for the respondent. 3.These tax case appeals are admitted on the followingsubstantial questions of law: "(i)Whether on the facts and in the circumstancesof the case, the ITAT was right in law in holding thatthere is no violation of 269SS read with Section 271Dof the Income Tax Act, 1961? (ii)Whether on the facts of the case, the Tribunalwas correct in not appreciating that the two trustswhich made the cash deposits have bank accountsoperating in their names and therefore, the assesseecannot be heard to say that the amounts paid in cashduring late hours, by students studying in theinstitutions of the trusts, got deposited in cash withthe assessee-company? (iii)Whether the ITAT was justified in followingthe jurisdictional High Court's Judgment in the case ofCIT Vs. idhayam Publications Ltd., (285 ITR 221) whichis clearly distinguishable on facts involved in thepresent case? (iv)Whether on the facts and in the circumstancesof the case, the Hon'ble Tribunal was right in law innot appreciating that there was a time span of sixyears involved in the relied upon case of M.SrinivasaRao V.ACIT (295 ITR 136), whereas, in the instant case,the Assessing Officer referred the violation underSection 269SS to the Additional CIT within a span ofsix months from the date of assessment order andtherefore, the relied upon decision will not apply tothe facts of the case on hand? (v)Whether on the facts and circumstances of thecase, the Hon'ble ITAT was correct in not consideringthe Hon'ble Kerala High Court's decision in the case ofGrihalaxmi Vision Vs.Addl. CIT (379 ITR 100) whichsquarely applies to the present case?" (iv)Whether on the facts and in the circumstancesof the case, the Hon'ble Tribunal was right in law innot appreciating that there was a time span of sixyears involved in the relied upon case of M.SrinivasaRao V.ACIT (295 ITR 136), whereas, in the instant case,the Assessing Officer referred the violation underSection 269SS to the Additional CIT within a span ofsix months from the date of assessment order andtherefore, the relied upon decision will not apply tothe facts of the case on hand? (v)Whether on the facts and circumstances of thecase, the Hon'ble ITAT was correct in not consideringthe Hon'ble Kerala High Court's decision in the case ofGrihalaxmi Vision Vs.Addl. CIT (379 ITR 100) whichsquarely applies to the present case?" 4. Mr.T.R.Senthil Kumar, learned Senior Standing Counselappearing on behalf of the appellant would submit that the taxeffect in this case is less than Rs.1 crore and is covered byCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Department of Revenue, Ministryof Finance, Government of India, Delhi. As per the saidcircular, the monetary limit to file an appeal before the HighCourt is fixed at Rs.1 crore. In this case, tax effect is lessthan Rs.1 crore and therefore, the appeals have to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, these Tax Case Appeals aredismissed on account of tax effect. However, the substantialquestions of law framed are left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeals to be heard and decided on merits. No costs.Consequently, connected miscellaneous petitions are closed. ay To 1.The Principal Commissioner of Income Tax Central 2,No.108, Mahatma Gandhi Road,Chennai 600 034. 2.The Income Tax Appellate Tribunal 'C' Bench,Chenani.Chenani. 3.The Commissioner of Income Tax (Appeals)18,46, Mahatma Gandhi Road, Nungambakkam, Chennai-34.46, Mahatma Gandhi Road, Nungambakkam, Chennai-34. 4.The Deputy commissioner of Income Tax Central Circle 2(1),Investigation Wing Room No.122 1st Floor New No.46, MG Road,Central Circle 2(1),Investigation Wing Room No.122 1st Floor New No.46, MG Road,Chennai-34. T.C.A.Nos.57 to 63 of 2018and C.M.P.Nos.1973 to 1977 & 1979 of 2020 ssi[co]srg 18/03/2020