PRINCIPAL COMMISSIONER OF IN vs. MOHAMMED HANIFA

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TCA/1019/2019HC Madras13 July 2020Bench: Hon`ble Mr Justice T. S. SIVAGNANAM4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court noted that the substantial questions of law raised in this appeal were identical to those considered in the case of the assessee's brother, S. Sithik Ali, in TCA.No.1017 of 2019. By a judgment dated July 9, 2019, in that case, the Revenue's appeal was dismissed, and the questions of law were answered against the Revenue. Following this precedent, the present appeal was also dismissed. The High Court did not provide a separate detailed reasoning for each question in this judgment, but rather relied on its prior decision. The operative direction was the dismissal of the appeal. No issue was expressly left undecided.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, Puducherry, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated May 10, 2019, passed by the Income Tax Appellate Tribunal (ITAT), Chennai ‘A’ Bench. The appeal pertains to assessment year 2010-11 and concerns the respondent assessee, Shri. Mohammed Hanifa. The High Court admitted the appeal on substantial questions of law. The procedural history indicates that the Revenue is challenging the ITAT's decision which was made in favour of the assessee.

What were the issues?

The High Court was called upon to decide three substantial questions of law: 1. Whether the ITAT's order was perverse for relying on a registered valuer's report dated April 8, 2019, which was allegedly inaccurate, deficient, and incomplete, lacking basis for adopting a higher rate of Rs. 290/- per sq.ft. as on April 1, 1981, and without reference to comparable cases, concerning Section 50C of the Income Tax Act. 2. Whether the ITAT correctly followed the value of Rs. 20/- per sq.ft. as on April 1, 1981, as adopted by the Assessing Officer based on a Sub-Registrar office report under Section 50C of the Income Tax Act. 3. Whether the ITAT was justified in accepting fresh evidence, namely the registered valuer's report dated April 8, 2019, by ignoring Rule 46A of the Income Tax Rules, 1962, and without affording a fair opportunity to the Assessing Officer. The Revenue contended that the ITAT's order was perverse, the valuation report was deficient, and fresh evidence was accepted improperly. The judgment does not record specific arguments from the assessee's side, but implies their position was in line with the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 260A,Section 50C

AI-generated summary — verify with the full judgment below

TCA.No.1019 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.7.2020 CORAM THE HONOURABLE MR. JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS. JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.1019 OF 2019 (heard through video conferencing)

The Principal Commissioner of Income Tax, Puducherry-3. ...Appellant Vs Shri.Mohammed Hanifa ...Respondent

APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 10.5.2019 made in ITA.No.190/Chny/2019 on the file of the Income Tax Appellate Tribunal, Chennai ‘A’ Bench for the assessment year 2010-11.

For Appellant : Mr.J.Narayanaswamy, SSC For Respondent : Mr.Ashokpathy

Judgment was delivered by T.S.SIVAGNANAM,J We have heard Mr.J.Narayanaswamy, learned Senior Standing Counsel appearing for the appellant - Revenue and Mr.Ashokpathy, 1/4 http://www.judis.nic.in TCA.No.1019 of 2019 learned counsel appearing for the respondent – assessee. 2. This appeal by the Revenue is directed against the order dated 10.5.2019 made in ITA.No.190/Chny/2019 on the file of the Income Tax Appellate Tribunal, Chennai ‘A’ Bench for the assessment year 2010-11. 3. The appeal has been admitted on 10.12.2019 on the following substantial questions of law : “i. Is not the order of the Appellate Tribunal perverse by relying upon the valuation report dated 08.4.2019 of the registered valuer, which is inaccurate, deficient and incomplete without giving any basis for the adoption of higher rate of Rs.290/- per sq.ft., as on 01.4.1981 and without reference to any comparable cases ? ii. Whether the Appellate Tribunal was correct in following that the value of the property at Rs.20/- per sq.ft., as on 01.4.1981, which was adopted by the Assessing Officer based on the Sub-Registrar office report as per Section 50C of the Income Tax Act ? And iii. Whether the Appellate Tribunal is justified in accepting the fresh evidence produced by the assessee namely registered valuer’s report dated 08.4.2019 by ignoring Rule 46A of the Income Tax Rules, 1962 and 2/4 http://www.judis.nic.in TCA.No.1019 of 2019 without providing a fair opportunity to the Assessing Officer?” 4. The above questions of law were considered by us in the case of the assessee’s brother on identical facts in TCA.No.1017 of 2019 and by judgment dated 09.7.2019 [PCIT Vs. S.Sithik Ali], the said appeal filed by the Revenue was dismissed and the questions of law were answered against the Revenue. 5. Following the judgment dated 09.7.2019 in TCA.No.1017 of 2019, the above tax case appeal is dismissed and the questions of law were answered against the Revenue. No costs.

13.7.2020 To The Income Tax Appellate Tribunal, Chennai ‘A’ Bench.

RS 3/4 http://www.judis.nic.in TCA.No.1019 of 2019 T.S.SIVAGNANAM, J AND V.BHAVANI SUBBAROYAN, J

TCA.No.1019 of 2019

13.7.2020 4/4 http://www.judis.nic.in

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