Tca/395/2012 Of Commissioner Of Income Tax v. K.k.venkatanarasimmalu

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.395 to 397 of 2012 Commissioner of Income-tax,Chennai.. Appellant/Appellantin all Appeals-vs- K.K.Venkatanarasimmalu,Prop:KKC Jewellers,No.79/80, Bujjanna Rao, Street, Walajapet – 632 513 .. Respondent/Respondentin all Appeals Appeals under Section 260A of the Income-tax Act, 1961,against the common order dated 18.04.2012, on the file of theIncome Tax Appellate Tribunal, 'C' Bench, Chennai in IT(SS)A No115/Mds/2007; C.O.No.102/Mds/2007 in IT(SS)A No.115/Mds/2007;and IT(SS)A No.8/Mds/2010 for the block period 1988-89 to 1998-99, against the order of the commissioner of Income Tax(Appeals)-IX, Chennai-34 in ITA No.25/09-10 dated 30/02/09against the proceedings of the Assistant commissioner of IncomeTax Circle I, Vellore dated 15/7/2008 for the assessment year1988-89 to 1998-1999 and against the proceedings of thecommissioner of Income Tax(Appeals) Chennai-34 in ITA No.376/99-2000, ITA No.169/2005-06 dated 28/2/07 and against the (IncomeTax Department) Assistant Commissioner of Income Tax, Velloredated 28/1/2000 for the assessment year 1988-89 to 1998-1999. For Appellant:Ms.S.Premalatha,(In all Appeals)Junior Standing Counsel:for Mr.M.Swaminathan,Senior Standing Counsel For Respondent:Ms.G.Vardini Karthik(In all Appeals) ****** COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the appellant/Revenue under Section260A of the Income-tax Act, 1961, are directed against thecommon order dated 18.04.2012, passed by the Income TaxAppellate Tribunal, 'C' Bench, Chennai, in IT(SS)A No115/Mds/2007; C.O.No.102/Mds/2007 in IT(SS)A No.115/Mds/2007;and IT(SS)A No.8/Mds/2010 for the block period 1988-89 to 1998-99. 2.The above appeals were admitted, on 22.01.2013, on thefollowing substantial questions of law:- “T.C.A.Nos.395 and 397 of 2012:-(i) Whether under facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in dismissing the appeal preferred by theRevenue as infructuous, in view of its allowingthe cross objection filed by the asseessee, thoughthe issue raised the cross objection are notappealable orders before the first appellateauthority?(ii) Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunal wasright in setting aside the block assessment andconsequently holding that the appeal filed by theRevenue against the order of the Commissioner ofIncome Tax (Appeal) is infructuous? (iii) Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunal wasright in not adjudicating the grounds of appeal ofthe Revenue, that the Commissioner of Income Tax(Appeal) erred in deleting the entire additionsmade by the assessing officer against theinvestment made in shares of companies in theappeal of the assessee against the assessingofficer's order, giving effect to the earlierorder of the Commissioner of Income Tax (Apeals). T.C(A) Nos.396 of 2012:- (i) Whether under facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that the block assessment underSection 158 BC was completed without jurisdictionby the Assessing Officer? (ii) Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that the search carried out bythe authorized officers was not warrant specificor premises specific and therefore the blockassessment under Section 158 BC is void ab initio? (iii) Whether on the facts and in thecircumstances of the case, the Income taxAppellate Tribunal was right in law in deciding togo into the validity of the action taken underSection 132(1) of the Income Tax Act, 1961. T.C(A) Nos.396 of 2012:- (i) Whether under facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that the block assessment underSection 158 BC was completed without jurisdictionby the Assessing Officer? (ii) Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that the search carried out bythe authorized officers was not warrant specificor premises specific and therefore the blockassessment under Section 158 BC is void ab initio? (iii) Whether on the facts and in thecircumstances of the case, the Income taxAppellate Tribunal was right in law in deciding togo into the validity of the action taken underSection 132(1) of the Income Tax Act, 1961. (iv) Whether the Tribunal was right in law topermit the assessee to enlarge the scope, ambitand complexion of the appeal in the grab ofraising additional grounds, specifically when suchgrounds do not fall within the scope of section253 of the Income Tax Act, since the issue ofexamining the validity of search could not betaken before the Appellate Authority when nospecific appeal is provided in the Act?” 3.Heard Ms.S.Premalatha, learned Junior Standing Counsel, forMr.M.Swaminathan, Senior Standing Counsel for the appellant andMs.G.Vardini Karthik, learned counsel for the respondent. 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.17/2019,dated 08.08.2019 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(Insp cell) //True Copy// Sub Assistant Registrar abr To 1.The Assistant Commissioner of Income-tax, Vellore. Vellore. https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals), 121, Mahatma Gandhi Road, Chennai-600 034. 121, Mahatma Gandhi Road, Chennai-600 034. 3.The Commissioner of Income Tax, Vellore 4.The Commissioner of Income Tax (Appeals)-IX, 121, Mahatma Gandhi Road, Chennai-600 034. 121, Mahatma Gandhi Road, Chennai-600 034. 5.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 'C' Bench, Chennai. +1cc to Mr.M.Swaminathan, Advocate SR.72335 +1cc to M/s.J.Sreevidhya, Advocate SR.71916 T.C.A.Nos.395 to 397 of 2012RK(CO)CB(04/11/2019)