The Commissioner Of Income Tax, Trichy v. Shri.s.p.ramamurthy

In the High Court of Judicature at Madras Dated : 30.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.403 & 404 of 2016 & CMP.No.8654 of 2016 The Commissioner of Income Tax, Trichy ...Appellant Vs Shri.S.P.Ramamurthy ...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 24.7.2015 made in IT(SS)A.No.20/Mds/2011andCO.No.10/Mds/2012inIT(SS)A.No.20/Mds/2011 on the file of the Income Tax AppellateTribunal, Chennai 'D' Bench for the block assessment year 1988-89 to 1998-99 and against the order dated 17/03/2011 made inITA.No.284/06-07 passed by the Commissioner of Income Tax(Appeals) Tiruchirapalli and against the order dated 29/03/2003pased by the Assistant Commissioner of Income Tax centra Circle-I, Tiruchirapalli for the assessment year 1988-89 to 1998-99. For Appellant:Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SC For Respondent:Mr.M.P.Senthilkumar COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.M.Swaminathan, learned Senior StandingCounsel assisted by Ms.V.Pushpa, learned Standing Counselappearing for the appellant – Revenue and Mr.M.P.Senthilkumar,learned counsel appearing for the respondent – assessee. 1/3 https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated24.7.2015madeinIT(SS)A.No.20/Mds/2011andCO.No.10/Mds/2012 in IT(SS)A.No.20/Mds/2011 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for the blockassessment year 1988-89 to 1998-99. 3. The appeals were admitted on 27.6.2016 on the followingsubstantial question of law : “Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the various additionsof unexplained investment cannot besustained (i) on the ground that theinvestments were reflected in balance sheetprepared and filed in response to noticeunder Section 158BC even though the assesseehad not maintained the books of accountstill the date of search and (ii) on theground that the additions were made only onthe basis of the statement recorded duringthe search and not material pointing towardsthe additions were seized during the searchwithout appreciating the facts that theadditions were made only on the basis ofseized material and without appreciating theoperation of legal presumption against theassessee under Section 132(4) when theassessee had not rebutted the admissions inthe statements ?” 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 question of law framed is 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 appeals 2/3 https://hcservices.ecourts.gov.in/hcservices/ to be heard and decided on merits. No costs. Consequently, theconnected CMP is also dismissed. Sd/- Asst.Registrar (CS I) /true copy/ Sub Asst. Registrar 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial question of law framed is 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 appeals 2/3 https://hcservices.ecourts.gov.in/hcservices/ to be heard and decided on merits. No costs. Consequently, theconnected CMP is also dismissed. Sd/- Asst.Registrar (CS I) /true copy/ Sub Asst. Registrar To1.The Income Tax Appellate Tribunal, Chennai 'D' Bench.2.The Commissioner of Income Tax Appeals,Tiruchirappallai3.The Assistant Commissioner of Income tax,Central Circle-I,Tiruchirappalli4.The Commissioner of Income Tax,trichy+1 cc to Mr.M.Swaminathan Advocate sr75844TCA.Nos.403 & 404 of 2016& CMP.No.8654 of 2016 aa15/11/2019 3/3