The Commissioner Of Income Tax, Central Circle, Chennai-34 v. M/S.viswams, Tirunelveli

In the High Court of Judicature at MadrasDated : 30.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAM The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax, Central Circle, Chennai-34...AppellantVsM/s.Viswams, Tirunelveli....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 05.2.2015 made in ITA.No.1091/Mds/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2003-04, against the order of theCommissioner of Income Tax Appeals Central I in ITA.NO.247/10-11dated 31.01.2014 in the assessment year 2003-04. against the order of the Deputy Commissioner of Income TaxCentral Circle IV(1), Chennai dated 30.12.10 PAN. inthe assessment year 2003-04. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SCFor Respondent: Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyer Padmanabhan 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.R.Venkatanarayanan,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated05.2.2015 made in ITA.No. 1091/Mds/2014 on the file of theIncome Tax Appellate Tribunal, Chennai 'C' Bench for theassessment year 2003-04. 1/3 https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 26.4.2016 on the followingsubstantial questions of law : “i. Whether on the facts andcircumstances of the case, the AppellateTribunal was right in quashing theassessment made under Section 153A, as thereare no seized materials to make freshassessments ?ii. Whether on the facts andcircumstances of the case, the AppellateTribunal is correct in not appreciating thatthe new search assessment procedure underSection 153A of the Act wherein the 'totalincome' is to be determined whereas in theold search assessment procedure, the'undisclosed income' is to be determined ?andiii. Whether in the facts andcircumstances of the case, the Tribunal iscorrect in holding that any assessment underSection 153A can be done only based onincriminating material ignoring the non-obstante clause which excludes reopeningunder Section 147?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is 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 caseappeal is 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 appeal to be heard and decided onmerits. No costs. Consequently, the connected CMP is alsodismissed. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar 2/3 To 1.The Assistant Registrar, Income Tax Appellate Tribunal,Besant Nagar,Chennai 'C' Bench. 2.The Commissioner of Income Tax Appeals,Central I Chennai. 3.The Deputy Commissioner of Income Tax,Central Circle IV(1), Chennai. +1cc to M/s.Subbaraya Aiyer Padmanabhan, Advocate sr.75934+1cc to Mr.Senthilkumar, Advocate sr.75717 TCA.No.264 of 2016 &CMP.No.5543 of 2016 mg(co)nr 14/11/2019 3/3