The Commissioner Of Income Tax, Salem v. Shri S.selvaraj

In the High Court of Judicature at MadrasDated : 02.1.2019Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.293 of 2011 & MP.No.1 of 2011 The Commissioner of Income Tax, Salem. ...Appellant/RespondentVsShri S.Selvaraj...Respondent /AppellantAPPEAL under Section 260A of the Income Tax Act, 1961against the order dated 13.8.2010 in ITA No.1259/Mds/2009 on thefile of the Income Tax Appellate Tribunal Madras 'D' Bench forthe assessment year 2001-02. For Appellant : Mr.T.R.Senthilkumar, SSC & Ms.K.G.Usharani, JSCFor Respondent :Mr.S.Sridhar Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant.2. This appeal by the Revenue challenges the order passedby the Income Tax Appellate Tribunal, which decided the issue infavour of the assessee, by raising the following substantialquestions of law : “i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theadditions made on account of unaccountedsales over and above what was admitted bythe assessee ignoring all relevant materialsand evidence discussed in the assessmentorder ? And ii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe Assessing Officer was not justified in https://hcservices.ecourts.gov.in/hcservices/ estimating the profit on the unaccountedsales at the average rate of 7.24% based onthe actual profits on accounted sales shownby the assessee and directing the AssessingOfficer to estimate the profit at 5%? ” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial questions of law raised are leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. Consequently, the connected MP is alsodismissed. No costs. Sd/-Assistant Registrar //True Copy//RSSub Assistant RegistrarTo 1.The Income Tax Appellate Tribunal, Madras 'D' Bench. 2.The Commissioner of Income Tax, Salem. +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No. 218+1cc to Mr.S.Sridhar, Advocate, S.R.No. 368 TCA.No.293 of 2011and MP.No.1 of 2011 SR(CO)GN(26/02/2019)