The Commissioner Of Income-Tax, Central-Ii, Chennai v. M/S.hindustan Transport Co

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 22.03.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income-Tax,Central-II, Chennai.... AppellantVs. M/s.Hindustan Transport Co.,39, Wall Tax Road, Chennai – 600 079.... Respondent Appeal preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, “A” Bench, dated 16.03.2009 in IT(SS).A.No.154/Mds/2007, Block Period 01.04.1996 to 31.03.2002 &01.04.2002 to 22.01.2003 Appeal against the order of theCommissioner of Income Tax(Appeals)-II, Chennai-121, M.G.Road, Nungambakkam, Chennai-34, made in (IT(A)/CHE/456/06-07,order dated 16/08/2007, Block Period, 01.04.96 to 31.03.2002and 01.04.2002 to 22.01.2003, Appeal against the order of theDeputy Commissioner of Income Tax, Central Circle II(3) 1[st]Floor, New Building, 108, M.G.Road, Nungambakkam, Chennai-34made in G.I.No./P.A.No.26301-H/AAAFH/214M. We have heard Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel for the appellant/Revenue and Mr.N.V.Balaji,learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 16.03.2009 made in IT(SS).A.No.154/Mds/2007 on the file of the Income Tax AppellateTribunal, Chennai, “A” Bench (for brevity, the Tribunal) forthe Block Period 01.04.1996 to 31.03.2002 & 01.04.2002 tohttps://hcservices.ecourts.gov.in/hcservices/22.01.2003. 3.The appeal was admitted on 23.11.2009 on the followingsubstantial questions of law: “1)Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theaddition of Rs.95,01,302/- in respect ofinflation of expenses, even though theassessing officer computed the undisclosedincome on the basis of seized documents A1(CG)-6 and A1(CG) 30 as mentioned clearly in theassessment order? 2.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law inconfirming the order of the Commissioner ofIncome Tax (Appeals), without appreciating thefacts and law, even though the assessee placedfresh evidences and fresh materials before thefirst appellate authority and the revenue wasnot afforded an opportunity as envisaged underRule 46A under the Income Tax Rules?3.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law in holdingthat the assessee paid advance tax on hisincome for the assessment year 2002-03 cannotbe treated as undisclosed income for block period?” 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 08.08.2019 issued by the Central Board of Direct Taxes.By the said Circular, the monetary limit for filing orpursuing an appeal before the High Court has been increased toRs.1 crore. It is further submitted that the tax effect inthis case is less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial questions of law framed are leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Nocosts. https://hcservices.ecourts.gov.in/hcservices/ Sd/- Assistant Registrar //True copy// mkn To 1.The Income Tax Appellate Tribunal, Chennai, “A” Bench 2.The Commissioner of Income Tax, Central-II, Chennai. Central-II, Chennai. 3. The Commissioner of Income Tax(Appeals)-II, 121, M.G.Road, Nungambakkam, Chennai-34. 5.In the light of the said submissions, the above TaxCase Appeal is dismissed as withdrawn on account of the LowTax Effect. The substantial questions of law framed are leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. Nocosts. https://hcservices.ecourts.gov.in/hcservices/ Sd/- Assistant Registrar //True copy// mkn To 1.The Income Tax Appellate Tribunal, Chennai, “A” Bench 2.The Commissioner of Income Tax, Central-II, Chennai. Central-II, Chennai. 3. The Commissioner of Income Tax(Appeals)-II, 121, M.G.Road, Nungambakkam, Chennai-34. 4. The Deputy Commissioner of Income Tax, Central Circle-II(3), 1[st] Floor, New Building, 108, M.G. Road, Nungambakkam, Chennai-34. Central Circle-II(3), 1[st] Floor, New Building, 108, M.G. Road, Nungambakkam, Chennai-34. +1cc to Mr.N.V.Balaji, Advocate SR.No.19223 +1cc to Mr.T.R.Senthil Kumar, Advocate SR.No.18573 T.C.A.No.1219 of 2009 SR-II(CO)GMY(30/04/2021)