The Commissioner Of Income Tax, Central-Iii, Chennai v. Shri.rangroopchand Chordia (Huf

In the High Court of Judicature at Madras Dated : 19.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.589, 590 and 592 of 2010 The Commissioner of Income Tax,Central-III, Chennai...Appellant/Respondent in all the TCAsVs. Shri.Rangroopchand Chordia (HUF)...Respondent/Appellant in TCA.589/2010Shri.Tejraj Chordia (HUF) rep.by legal heir Loonchand Chordia...Respondent/Appellant in TCA.590/2010Smt.Shoba Devi...Respondent/Appellant in TCA.592/2010 APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 21.8.2009 made in IT(SS)A.Nos.14,15 and 19/Mds/ 2009 on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench for the block period 01.4.1991 to31.3.2000, against the order of the Commissioner of Income Tax(Appeals)-II, Chennai -34 dated 27/02/2009 in ITA.No.162/05-06against the Assessment order, of the Deputy Commissioner ofIncome Tax, Central Circle III(3), dated 21/11/2005, inPANo/G-I No.202-R, against the order of the Commissioner ofIncome Tax (Appeals)-II, Chennai -34, dated 27/02/2009 inITA.No.164/05-06 against the Assessment order of the DeputyCommissioner of Income Tax Central Circle III(3), Chennai dated21/11/2005 in PA G.No./G.I.No.201-T against the order of theCommissioner of Income Tax(Appeals)-II, Chennai -34, dated27/02/2009 in ITA.No.170/05-06 against the Assessment order ofthe Deputy Commissioner of Income Tax, Central Circle III(3),Chennai, dated 21/11/2005 in PA.No./G.I.No.706-S for theAssessment year – block period ending 07.06.2000 respectively. 2 For Appellant :Mr.T.R.Senthilkumar, SSC assisted byMs.K.G.Usharani, SC COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 21.8.2009 made in IT(SS)A.Nos.14, 15 and 19/Mds/ 2009 onthe file of the Income Tax Appellate Tribunal, Chennai 'B' Benchfor the block period 01.4.1991 to 31.3.2000. 3. The appeals were admitted on 02.8.2010 on the followingsubstantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe question regarding the genuineness ofcash credit entries recorded in the bookscould form the subject matter only ofregular assessment and not the blockassessment when the assessee's brother inlaw Shri.Roopchand Jain had voluntarilyadmitted in his statement recorded on oathduring the course of search that theimpugned cash credits were bogus ? ii. Whether the Tribunal was right inholding that the cash credits appearing inthe names of various creditors could not betreated as 'undisclosed income' and could beconsidered only in regular assessments byignoring the amended provision of Sub-Section (2) of Section 158BB of the Act ?Andiii. Whether the Tribunal was right inholding that in view of the provisions ofSection 158BB(2), Sections 68 to 69D wouldapply to block assessment as well andtherefore, the Assessing Officer wasjustified in treating the total credits ofRs.7,24,075/- in the names of RajkamalMotors and Shri.M.A.Sharma as bogus inaccordancewiththeadmissionof Shri.Rangroopchand Chordia after givingadequate opportunity to the assessee toprove the genuineness of the credits ?” ii. Whether the Tribunal was right inholding that the cash credits appearing inthe names of various creditors could not betreated as 'undisclosed income' and could beconsidered only in regular assessments byignoring the amended provision of Sub-Section (2) of Section 158BB of the Act ?Andiii. Whether the Tribunal was right inholding that in view of the provisions ofSection 158BB(2), Sections 68 to 69D wouldapply to block assessment as well andtherefore, the Assessing Officer wasjustified in treating the total credits ofRs.7,24,075/- in the names of RajkamalMotors and Shri.M.A.Sharma as bogus inaccordancewiththeadmissionof Shri.Rangroopchand Chordia after givingadequate opportunity to the assessee toprove the genuineness of the credits ?” 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 the respectivecases is less than 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 in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. Sd/- Assistant Registrar //True Copy// 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax (Appeals)-II,46, Mahatma Gandhi Road, Nungambakkam. 3.The Deputy Commissioner of Income Tax,Central Circle III(3), Chennai. AKM/24.10.19/3P-5C / TCA.Nos.589, 590 & 592 of 2010