Tca/431/2014 Of Commisioner Of Income Tax v. N. Madanlal Daga (Huf)

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.431 and 432 of 2014 Commissioner of Income Tax,Central Circle, Chennai.... Appellant in both Appeals-vs- Shri N.Madanlal Daga (HUF),By Karta Sri Madanlal Daga,70, GNT Road, Red Hills, Chennai-600 052.PAN: ... Respondent in both Appeals APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 13.06.2013, made in I.T.A.Nos.995& 1000/Mds/2009 on the file of the Income Tax Appellate Tribunal'B' Bench, Chennai for the assessment years 2000-2001 and 2005-2006 respectively, as against the order of the Commissioner of Income -Tax(Appeals)-I, Magatma Gandhi Road, Nungambakkam, Chennai 600 034made in ITA Nos.259/07-08 and 264/07-08 dated 18/03/2009 inrespectively as against the order of the Assistant Commissionerof Income Tax Central Circle-IV (2) Chennai in PAN GIRNos. dated 28/12/2007 for the Assessment Year 2000-2001 and 2005-2006 respectively in TCA Nos.431 and 432 of 2014. For Respondent :Ms.Sree Lakshmi Valli(In both Appeals)For Mr.N.Muthukumar https://hcservices.ecourts.gov.in/hcservices/ COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These appeals filed by the Revenue under Section 260A of theIncome-tax Act, 1961 are directed against the common order dated13.06.2013, made in I.T.A.Nos.995 & 1000/Mds/2009 on the file ofthe Income Tax Appellate Tribunal 'B' Bench, Chennai for theassessment years 2000-2001 and 2005-2006 respectively. 2.The appeals were admitted on 08.12.2014, on the followingsubstantial questions of law:-“T.C.A.No.431 of 2014:- (i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theaddition of Rs.74,45,523/- when the assessee wasunable to produce any evidence with regard tosundry debtors?(ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theaddition of Rs.74,45,523/- which was openingbalance in Sahukari Byaj business which was notdisclosed by the assessee to the department evenprior to assessment year 2000-2001? T.C.A.No.432 of 2014:- (i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theaddition of Rs.95,48,810/- for the assessment year2005-06 treating the same that the assessee hasadmitted the same for the assessment year 2006-07? (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theexcess stock found at the time of search amountingto Rs.95,48,810/- not to be taxed in theassessment year 2005-2006 when the assessee hadfiled a notarized affidavit admitting asunexplained investment in stock of gold and silverduring the search?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Ms.Sree Lakshmi Valli, learned counsel forMr.N.Muthukumar, 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. 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Ms.Sree Lakshmi Valli, learned counsel forMr.N.Muthukumar, 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 //True Copy// Sub Assistant RegistrarabrTo1.The Income Tax Appellate Tribunal 'B' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals)-I, 46 Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 3.The Assistant Commissioner of Income Tax, Central Circle-IV(2), Chennai. +1cc to M/s.Sree Lakshmi Valli, Advocate Sr.73050+1cc to Mr.T.R.Senthilkumar, Advocate Sr.72918 T.C.A.Nos.431 and 432 of 2014 spd[co]srg 01/11/2019