The Commissioner Of Income Tax, Chennai v. M/S.royal Splendours Developers Pvt. Ltd

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.850 of 2017 The Commissioner of Income Tax, Chennai ...AppellantVs M/s.Royal Splendours DevelopersPvt. Ltd., No.9, Ganapathy ColonyGuindy Industrial EstateGuindy Chennai-600 032...Respondent Prayer:APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 16.2.2017 made in ITA.No.768/Mds/2016 onthe file of the Income Tax Appellate Tribunal, Chennai 'C' Benchfor the assessment year 2009-10 preferred against the order ofthe Commissioner of Income Tax(Appeals)-3, Chennai-34, dated28.01.2016, made in ITA.No.22/2013-2014/A-3, against the orderpassed by the Assistant Commissioner of Income Tax CompanyCircle V(4) dated 28.03.2013, in PAN.No. . For Appellant:Mr.T.Ravikumar, SSC &Mrs.R.Hemalatha, SSCFor Respondent:Not ready in notice Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenue. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 16.2.2017 made in ITA.No.768/Mds/2016 on 1/3 https://hcservices.ecourts.gov.in/hcservices/ the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench(for brevity, the Tribunal) for the assessment year 2009-10. 3. The appeal has been admitted on 20.2.2018 on the followingsubstantial questions of law : “1. Whether on the facts and in thecircumstances of the case, the Tribunal wasright in law in holding that thereassessment proceeding is bad in law sincethe reason recorded for reopening of theassessment was not furnished to the Assesseebefore completion of the reassessment? 2. Is not the finding of the Tribunal badby quashing the reassessment made by the AOespecially when the facts remains that theassessee did not object to the nonfurnishingofthereasonsduringreassessment proceedings and had alsoparticipated in it?3. Whether the reasoning and finding ofthe Tribunal is proper especially when theHon'ble High Court of Madras in the case ofAreava T & D Ltd - 294 ITR 233 has held thatin a similar case that the action of the AOin completing the reassessment withoutdisposing off the objections filed by theAssessee to the notice issued u/s.148 andnon issuance of statutory notice u/s.143(2)was only a procedural lapse / irregularitywhich would not make the reassessment asnullity and the matter was to be remandedback to the AO for disposal afresh inaccordance with law? and 4. Whether the Tribunal was right inquashing the reassessment order especiallywhen the Administrative action is found tobe suffering only from breach of principleof natural justice then the decision makingprocess should be placed at a stage wherethe defect is detected rather than topermanently annul the action of theauthority?" 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 an 2/3 appeal 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. 2/3 appeal 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. -s/d- Assistant RegistrarTrue Copy Sub-Assistant RegistrarrsTo1.The Income Tax Appellate Tribunal, Chennai 'C' Bench.2.The Commissioner of Income Tax(Appeals)-3Chennai-34 3.The Assistant Commissioner of Income Tax,Company Circle-V(4) Chennai-34 TCA.No.850 of 2017ssv(co)aa05/10/2020 3/3