Tca/331/2014 Of Commissioner Of Income Tax v. M/S Srm Hotels Pvt Ltd

In the High Court of Judicature at Madras Dated : 18.06.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal Nos.331 to 333 of 2014 Commissioner of Income Tax,Central Circle, Chennai-600 034....Appellant in all TCAs M/s.SRM Hotels Pvt Ltd.,No.2, Veerasamy Street,West Mambalam, Chennai-600 033.PAN: ...Respondent in all TCAs Prayer :APPEALS under Section 260A of the Income Tax Act,1961 against the order dated 21.06.2013 made in ITA Nos.612, 613& 614/Mds/2013 on the file of the Income Tax Appellate Tribunal'D' Bench, Chennai for the assessment years 2002-03, 2003-04 and2004-05 preferred against the order of the Commissioner of theIncome Tax (Appeals)-II, Chennai-34, dated 30.01.2013, made inITA Nos.100, 111 and 100/10-11, against the order of theAssistant Commissioner of Income Tax Central Circle-I(3),Chennai-34 dated 31.12.2009 for the assessment years 2002-03 and2003-04 and dated 16.12.2008 for the assessment year 2004-05,made in PAN No. . For Appellant :Mr.T.R.Senthil Kumar(In all TCAs)Senior Standing Counsel &Ms.K.G.Usha Rani,Standing Counsel For Respondent:Mr.N.Devanathan &(In all TCAs)Mr.Suganthiraj Common Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel appearingfor the appellant-Revenue and Mr.N.Devanathan, learned counseland Mr.Suganthiraj, learned counsel for the respondent-assessee. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 are directed against the order dated21.06.2013 made in ITA Nos.612, 613 & 614/Mds/2013 on the fileof the Income Tax Appellate Tribunal 'D' Bench, Chennai for theassessment years 2002-03, 2003-04 and 2004-05. 3. The appeals were admitted on 16.09.2014, on the followingsubstantial questions of law:- “1. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in quashing theassessment made under section 153C read withSection 143(3) read with Section 263 is badin law when the original assessment orderhas not reached finality?2.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in quashing theassessment order holding that the assessingofficer has not recorded the reasons beforeinitiating proceedings under Section 153C ofthe Income Tax Act? 3. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in dismissingthe department appeals when the earlier yearappeal is pending before this HonourableHigh Court?” 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 this case is lessthan 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 is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeals to be heard and decided onmerits. No costs. Sd/-Assistant Registrar(CO MDU)//True copy//Sub Assistant RegistrarabrTo1.The Income Tax Appellate Tribunal 'D' Bench, Chennai.2. The Commissioner of Income Tax (Appeals)-II, Chennai-34.3. The Assistant Commissioner of Income Tax, Central Circle-I(3), Chennai-34TCA.Nos.331 to 333 of 2014SSV(CO)GMY(10/09/2020)