The Commissioner Of Income Tax - I,Coimbatore v. A.sundaralingam

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 19.07.2018 Coram THE HONOURABLE MR. JUSTICE M.M.SUNDRESHandTHE HONOURABLE MR. JUSTICE N.ANAND VENKATESH T.C.(A). No.611 of 2010 The Commissioner of Income Tax - I,Coimbatore. .. Appellant/Respondent vs. A.Sundaralingam.. Respondent/Appellant Appeal filed under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal "A"Bench, Chennai dated 20.11.2009 passed in I.T.A. No.469/Mds/2007for the Assessment Year 2003-04 against th order of theCommissioner of Income Tax(Appellas) I Coimbatore dated 12.01.07made in Appeal No.104/06/07 for the Assessment Year 2003/04against the order of Income Tax Department, AssistantCommissioner of Income Tax, Circle III Coimbatore dated 30/03/06made in ACLPS7695G/Individual for the Assessment Year 2003-04. For Appellant:Ms.K.G.Usharanifor Mr.T.R.Senthilkumar For Respondent :No appearance (Judgment of the Court was delivered by M.M.SUNDRESH, J.)The Revenue has filed this appeal by formulating thefollowing substantial question of law in respect of theassessment year 2003-2004: "Whether on the facts and in the circumstances ofthe case, the Income Tax Appellate Tribunal was rightin deleting the addition of Rs.15 lakhs in the handsof the assessee by the Assessing Officer, even thoughthe assessee had not proved any of his pleas and never https://hcservices.ecourts.gov.in/hcservices/ produced any evidence, justifying the retraction ofthe earlier statement made under Section 132(4) of theIncome Tax Act, 1961 during the survey under Section133A?" 2.Heard the learned counsel appearing for the appellant andthe learned counsel appearing for the respondent. 3.Learned counsel appearing for the appellant submits thatthe issue involved in this appeal viz., low tax effect hasalready been considered by this Court in T.C.A. No.1528 of 2007on 06.06.2018 and the following order has been passed: "3. It may not be necessary for us to decide thesubstantial question of law framed for consideration,on account of the low tax effect in this appeal. Thisissue was considered by us in the case of Commissionerof Income Tax vs. N.Meenakshisundaram in T.C.(A)Nos.868 & 869 of 2008 dated 23.04.2018, by taking noteof the Circular Instructions issued by the CentralBoard of Direct Taxes (CBDT) and also taking note ofthe submissions of the Revenue, the relevant portionsof which are quoted hereunder: "10. An argument was advanced by the learnedSenior Standing Counsel for the Revenue that thecircular can have effect only, while filing theappeal and not while hearing of the appeal andwould have no impact on the appeals, which areadmitted and pending. However, in the Circularissued in the year, 2015, it has been made clearthat, it will apply to pending appeals as well.In respect of the earlier circulars, it would berelevant to take note of the decision of theHon'ble Supreme Court in Mathew M. Thomas VsCommissioner Of Income-Tax [(1999) (III) ELT 4 SC]wherein, the Hon'ble Supreme Court, whileconsidering the effect of Circular No.445, dated16.05.1986, pointed out that Circular No. 455dated 16.5.1986 issued by the C.B.D.T. isapplicable to all pending proceedings which havenot attained finality under Section 269 I of theAct as defined in the explanation to the saidSection. ........................... 14. Therefore, the Circular has to beunderstood as part of the litigation policy of theGovernment of India to reduce the litigation andto bring down the number of Appeals, which arepending before the Court and also ensure that the Appeals are not preferred by the Departmentwithout proper examination of the case onmerits. ........... ........................... 14. Therefore, the Circular has to beunderstood as part of the litigation policy of theGovernment of India to reduce the litigation andto bring down the number of Appeals, which arepending before the Court and also ensure that the Appeals are not preferred by the Departmentwithout proper examination of the case onmerits. ........... 15. As per the Circular/Instruction issued byCBDT, the present Appeal should be not pressed bythe Revenue. If, at the time of filing of theAppeal, decision has to be taken whether to filean Appeal or not and the Authority by dueapplication of mind and bearing the two caveatslaid down by the Hon'ble Supreme Court, in SuryaHerbal Ltd., case (supra) should take a decision.In cases, where, the Appeals are pending beforethe Court, appropriate Officer has to take adecision. In the instant case, it appears that,no such specific instruction is issued toMr.M.Swaminathan, the learned Senior StandingCounsel to withdraw the Appeal, nor, can we compelthe learned counsel to withdraw the Appeal. 16. Having held that the Circular issued byCBDT is applicable to the case on hand and the taxeffect being less than the threshold limitprescribed in the Circular, we dismiss the presentAppeal by applying the law laid down by theHon'ble Supreme Court, in Surya Herbal Ltd., case(supra), as the two caveats mentioned thereunderdoes not arise in the instant case.”4.By applying the above decision, we dismiss thistax case (appeal) on the ground of low tax effect andin terms of the above referred decision, leave thesubstantial question of law, which has been framed forconsideration. No costs." 4.In such view of the matter and in view of the circularissued by the Central Board Direct Taxes in Circular No.21/2015dated 10.12.2015, this tax case appeal is dismissed on theground of low tax effect, leaving the substantial question oflaw open, which has been framed for consideration. No costs. Sd/- Assistant Registrar(CS V) //True Copy// Sub Assistant Registrar https://hcservices.ecourts.gov.in/hcservices/ mmi To 1.The Income Tax Appellate Tribunal,"A" Bench, Chennai. 2.The Commissioner of Income Tax I, Coimbatore. 3.Income Tax(Appeals) I,Coimbatore. 4.Income Tax Department,Assistant commissioner of Income TaxCircle III, Coimbatore. 5.The Assistant Registrar,Income Tax Appellate Tribunal,III Floor, Rajaji Bhavan,Besant Nagar, Chennai-90 +1cc to M/s.T.R.Senthil Kumar, Advocate sr.no.48251 T.C.(A).No.611 of 2010 skv(co) nr 03/08/2018