Principal Commissioner Of Income Tax Central I, Chennai v. M/S.saravana Stores (Tex), Chennai

In the High Court of Judicature at Madras Dated : 06.11.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.596 to 599 of 2018 Principal Commissioner of Income TaxCentral I, Chennai..Appellant in all AppealsVs M/s.Saravana Stores (Tex), Chennai..Respondent in all Appeals APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 30.11.2017 made respectively inITA.Nos. 989, 990, 991 and 992/Mds/2016 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench respectivelyfor the assessment years 2006-07, 2007-08, 2008-09 and 2009-10,against the order dated 27/11/16 and made in ITA Nos.21 to24/14-15 on the file of The Commissioner of Income Tax(Appeals)18, Chennai-34 respectively and against the order dated 28/03/14and made in PAN No. on the file of AssistantCommissioner of Income Tax, Central Circle IV(2) Chennai-34respectively and against the order dated 11/9/13 and made inITA.No.437/Mds/2013 on the file of The Income Tax AppellateTribunal, 'C'Bench, Chennai for Assessment Year-2008-09(in TC598/18) and against the order dated 27/12/12 and made in ITANo.103/11-12 on the file of The Commissioner of Income Tax(Appeals)I, Chennai-34 in Assessment year 2008-09(in TC 598/18)and against the order dated 06/06/12 and made in ITANo.1739/Mds/2010 on the file of the Income Tax AppellateTribunal, 'B'Bench Chennai for Assessment year 2007-08(in TC597/18) and against the order dated 28/12/10 and made in PAN Noon the file of the Assistant Commissioner of Income Tax, CircleII, Chennai(in TC 598/18) and against the order dated 30/07/10and made in ITA.No.82/09-10. On the file of The Commissioner ofIncome Tax(Appeals) VI(i.c), Chennai (in TC 597/18) and againstthe order dated 30/12/09 and made in PAN.NO. on thefile of Additional Commissioner of Income Tax, Business Range Page numbers II, Chennai(in TC 597/18). For Appellant: Mr.T.R.Senthilkumar, SSC (in all cases) assisted by Ms.K.G.Usharani, SC For Respondent: Mr.Amrith Bhargav (in all cases) COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.Amrith Bhargav,learned counsel appearing for the respondent – assessee. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for brevity, the Act) are directedagainst the common order dated 30.11.2017 made respectively inITA.Nos.989, 990, 991 and 992/Mds/2016 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench respectively for theassessment years 2006-07, 2007-08, 2008-09 and 2009-10. 3. The appeals were admitted on 16.11.2018 on the followingsubstantial questions of law :“i. Whether the Appellate Tribunal iscorrect in law in reaching to the conclusionthat the assessment can be done underSection 153A of the Income Tax Act onlybased on incriminating material ignoring thefact that under new procedure of searchassessment, it is the 'total income' that isto be determined and not merely the incomerelating to search ? ii. On the facts and in thecircumstances of the case, whether the narrowinterpretation given by the AppellateTribunal to the provisions of Section 153Acan be held to be valid in law ? andiii. Whether, on the facts and in thecircumstances of the case, under Section153A, the Assessing Officer is not eligibleto bring to tax all the income, which washitherto untaxed besides the income detectedon account of search conducted under Section132 of the Income Tax Act ?” Page numbers ii. On the facts and in thecircumstances of the case, whether the narrowinterpretation given by the AppellateTribunal to the provisions of Section 153Acan be held to be valid in law ? andiii. Whether, on the facts and in thecircumstances of the case, under Section153A, the Assessing Officer is not eligibleto bring to tax all the income, which washitherto untaxed besides the income detectedon account of search conducted under Section132 of the Income Tax Act ?” Page numbers 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS-VII) //True Copy//Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. Chennai 'A' Bench. 2.Principal Commissioner of Income Tax, Central I, Chennai. Central I, Chennai. 3.The Commissioner of Income Tax(Appeals)-18, Chennai-34. Chennai-34. 4.The Assistant Commssioner of Income Tax, Central Circle IV(2), Chennai-34. Central Circle IV(2), Chennai-34. 5.The Income Tax Appellate Tribunal 'C'Bench, Chennai. Tribunal 'C'Bench, Chennai. 6.The Commissioner of Income tax (Appeals)-I, Chennai-34. (Appeals)-I, Chennai-34. 7.The Income Tax Appellate Tribunal 'B'Bench, Chennai-34. Tribunal 'B'Bench, Chennai-34. Page numbers 8.The Assistant Commissioner of Income Tax, Circle II, Chennai. Circle II, Chennai. 9.The Commissioner of Income Tax, (Appeals)VI,(i/c), Chennai. 10.The Additional Commissioner of Income Tax, Business Range II, Chennai. Chennai. +1cc to Mr.T.R.Senthil kumar, Advocate SR.36102 TCA.Nos.596 to 599 of 2018VD(CO)CB(29/12/2020) Page numbers