Principal Commissioner Of Income Taxcentral Ii, Chennai-34 v. M/S.jubilee Plot And Housing Pvt.ltd., Chennai-40

In the High Court of Judicature at MadrasDated : 06.11.2020 Coram : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Principal Commissioner of Income TaxCentral II, Chennai-34...Appellant in All Appeal Vs M/s.Jubilee Plot and Housing Pvt.Ltd., Chennai-40...Respondent in All Appeal APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 24.12.2018 made respectively inITA.Nos. 1447, 1452 and 1445/Chny/2018 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench for the assessmentyears 2010-11, 2015-16 and 2009-10 against the order dated12/1/18 and made in ITA Nos.212,94, and 211 on the file of TheCommissioner of Income Tax (Appeals)-18, Chennai-34 and againstthe order dated 31/3/16 and made in GI No./PA.No.AABCJ 3938 J onthe file of The Assistant Commissioner of Income Tax CentreCircle 2(2)Chennai respectively. For Appellant:Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SCFor Respondent:Mr.M.Vivekanandan 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.M.Vivekanandan,learned counsel appearing for the respondent – assessee. https://hcservices.ecourts.gov.in/hcservices/ 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 24.12.2018 made respectively inITA.Nos.1447, 1452 and 1445/Chny/2018 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench (for short, theTribunal) respectively for the assessment years 2010-11, 2015-16and 2009-10. 3. The appeals were admitted on 17.12.2019 on the followingsubstantial questions of law : “i) Whether on the facts and in thecircumstances of the case, the ITAT wasright in law in holding that the assessingofficer cannot initiate proceedings underSection 153A of the I.T.Act, where there wasno incriminating material found during thecourse of search operation u/s.132 of theAct? (ii) Whether the ITAT was correct in nottaking cognizance of the Kerala High Court'sdecision in the case of CIT v. St.FrancisClay Decor Tiles (385 ITR 624) and theKarnataka High Court's decision in the caseof Canara Housing Development Co. V. DCIT(49 taxmann.com 98)? and (iii) Whether the ITAT was correct inconfirming the disallowance of landdevelopment expenses @ 24.35% of the saidexpenditure is not warranted, relying uponits earlier order in the assessee's own casefor the assessment years 2007-08 and 2008-09, against which appeal has been preferredby the department ?” 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 the https://hcservices.ecourts.gov.in/hcservices/ Revenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. -Sd/- Assistant Registrar (CS ) // True Copy // To Sub Assistant Registrar 1 The Income Tax Appellate Tribunal, Chennai 'A' Bench.2 Principal Commissioner of Income Tax, Central II, Chennai-34. 3 The Commissioner of Income Tax (Appeals)-18 Chennai-34. 4 The Assistant of Commissioner of Income Tax Centre Circle 2(2), Chennai-34 https://hcservices.ecourts.gov.in/hcservices/ Revenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. -Sd/- Assistant Registrar (CS ) // True Copy // To Sub Assistant Registrar 1 The Income Tax Appellate Tribunal, Chennai 'A' Bench.2 Principal Commissioner of Income Tax, Central II, Chennai-34. 3 The Commissioner of Income Tax (Appeals)-18 Chennai-34. 4 The Assistant of Commissioner of Income Tax Centre Circle 2(2), Chennai-34 + 1 C.C. to MR.VIVEKANANDAN, Advocate SR.NO.36119 + 1 C.C. to MR.VIVEKANANDAN, Advocate SR.NO.36120 + 1 C.C. to MR.VIVEKANANDAN, Advocate SR.NO.36121 + 1 C.C. to MR.T.R.SENTHIL KUMAR, Advocate SR.NO. 36103 TCA.Nos.990, 1007 & 1008 of 2019 RS RR 19/12/2020