Tax Case (Appeal) v. Tax Case Appeal Filed Under Section 260A Of The Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.898 of 2010 Commissioner of Income Tax III,Chennai.Appellant Vs. M/s.Raunaq Steel Trading P. Ltd.,No.45/24, Venkata Maistry St.,I Floor, Mannady, Chennai 600 001.Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 30.3.2010 made in ITA No.1347/Mds/2009,and against the order passed by theCommissioiner of Income Tax(Appeals)-V, Chennai-34, dated17/09/2008 made in ITA.NO.599 & 600/2006-07 and against theorder passed by the Income Tax Officer, (OSD), Company Circle-V(3),Chennai-34dated26/12/06madein PA.NO./GIR.NO.AACCRZ710B/53669-R for Assessment year 2003-04. For Appellant : Ms.V.Pushpa Junior Standing Counsel For Respondent : Mr.M.P.Senthilkumar J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue, callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'B' Bench, Chennai, dated 30.3.2010 madein ITA No.1347/Mds/2009, for the Assessment Year 2003-2004, byraising the following substantial questions of law: "(i) Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in confirming the order of the Commissioner ofIncome Tax (Appeals) deleting the addition of Rs.2 https://hcservices.ecourts.gov.in/hcservices/ Crores being unexplained share capital even thoughthe assessee had not discharged the initial burdenof proving the genuineness and creditworthiness ofthe alleged subscribers and the genuineness of thetransactions? ii) Whether, on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in applying the decision of the Supreme Courtdismissing the Department's Special Leave Petitionin the case of CIT vs. Lovely Exports Pvt. Ltd. (216CTR 195) which was not applicable to the facts ofthe case as found as a result of detailedinvestigation made and discussed in the assessmentorder?" 2. When the matter is taken up for hearing, learned JuniorStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed, as withdrawn, keeping open thesubstantial questions of law for determination in appropriatecases. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// ssk. Sub Assistant Registrar To 1. Commissioner of Income Tax III, Chennai. 2. The Commissioner of Income Tax(Appeals)-V,Chennai-34. 3. Income Tax Appellate Tribunal, 'B' Bench, Chennai. https://hcservices.ecourts.gov.in/hcservices/ 4. The Income Tax Officer (OSD), Company Circle V(3), Chennai 600 034. +1cc to Mr.G.Baskar, Advocate sr.100939 +1cc to Mr.M.Swaminathan, Advocate sr.100683 T.C.(A) No.898 of 2010 ca(co)nr 29/01/2020