Principal Commissioner Of Income Tax Non-Corporate Ward 9(5), Nungambakkam, Chennai v. M/S Sudhir Huf

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.12.2020 CORAM THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM&THE HON'BLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.435 of 2020 Principal Commissioner of Income Tax Non-Corporate Ward 9(5),Nungambakkam,Chennai - 600034 ... Appellant/RespondentVs. M/s Sudhir HUF ... Respondent/Appellant Tax Case Appeal is filed under Section 260A of the IncomeTax Act 1961 against the order dated 12.12.2019 made inI.T.A.No.3520/Chny/2018 on the file of the Income TaxAppellate Tribunal, Madras “A” Bench, for the assessment year2015 – 2016. This appeal preferred against the Commissioner of IncomeTax (Appeals) 10 No.121, Mahatma Gandhi Road, Chennai 600 034dated 31.10.2018 made in ITA.60/17-18/ CIT (A)-10 for theAssessment Year 2015-16 and preferred against the Income TaxOfficer, Non Corporate Ward – (5), Chennai 34 dated 11.12.2017made in PAN/GIR.No.AAUH56796M for the Assessment Year 2015-2016. For Appellant : Mr.R.Karthik RanganathanFor Respondent : Mr.A.S.Sriraman (Judgment of the Court was delivered by T.S.SIVAGNANAM.J)We have heard Mr.R.Karthik Ranganathan, learned counselappearing for the appellant and Mr.A.S.Sriraman, learnedcounsel appearing for the respondent. 2. This appeal, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 is directed against the orderdated 12.12.2019 made in I.T.A.No.3520/Chny/2018 on the fileof the Income Tax Appellate Tribunal, Madras “A” Bench, forthe assessment year 2015 - 2016. 3. The Substantial Questions of Law raised forhttps://hcservices.ecourts.gov.in/hcservices/consideration in these appeals are as follows : “1. Whether on the facts and circumstancesof the case and in Law, the Hon'ble ITAT wasright and justified in setting aside the orderpassed by the Assessing Officer to re-examine thematter when the Assessing officer has alreadyduly examined the matter before passing theassessment order. 2. Whether on the facts and circumstances ofthe case and in law, the Hon'ble ITAT was rightand justified in not dismissing the appeal of theassessee as done by the ITAT 'A' Bench, Chennaiin ITA No.827/Chny/2019 dated 11.06.2019 in thecase of the ITAT 'A' Bench, Chennai inI.T.A.No.827/Chny/2019 dated 11.06.2019 in thecase of Smt.Rekha Jain and by ITAT 'C" Bench,Chennai in ITA No.3009/Chny/2018 in the case ofHarish Kumar HUF, when the facts andcircumstances of those cases are exactly similarto the present case. 3. Whether on the facts and circumstances ofthe case and in law, the Hon'ble ITAT was rightand justified in remitting the issue back to thefile of the Assessing Officer and shifting theonus to the Revenue with a direction that theAssessing officer shall bring on record the roleof the assessee in promoting the company and therelationship of the assessee, if any with thepromoters, role of the assessee in inflating theprice of shares etc., " 4. The learned counsel for the appellant submits that theabove appeal is not pursued by the Revenue on account of thelow tax effect in terms of Circular No.17/2019 dated 08.8.2019issued by the Central Board of Direct Taxes. By the saidCircular, the monetary limit for filing or pursuing an appealbefore the High Court has been increased to Rs.1 Crore. It isfurther submitted that the tax effect in this case is lessthan the threshold limit. 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeal to be heard and decided onmerits. //True Copy// Sd/- https://hcservices.ecourts.gov.in/hcservices/ Sub Assistant Registrar ssd To 1.The Income Tax Appellate Tribunal, “A” Bench, Chennai. “A” Bench, Chennai. 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeal to be heard and decided onmerits. //True Copy// Sd/- https://hcservices.ecourts.gov.in/hcservices/ Sub Assistant Registrar ssd To 1.The Income Tax Appellate Tribunal, “A” Bench, Chennai. “A” Bench, Chennai. 2.The Commissioner of Income Tax, (Appeals) 10, No. 121, Mahatma Gandhi Road, Chennai 600 034. (Appeals) 10, No. 121, Mahatma Gandhi Road, Chennai 600 034. 3.The Income Tax Officer, Non Corporate Ward 9 (5), Chennai 34. Non Corporate Ward 9 (5), Chennai 34. Tax Case Appeal No.435 of 2020 KJ(CO)GN(01/02/2021)