COMMISSIONER OF INCOME TAX vs. SARANATHAN ACADEMY OF

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TCA/1231/2015HC Madras05 November 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court did not decide the substantial questions of law on merits. Instead, the Court recorded the submission made by the learned Senior Standing Counsel for the appellant Revenue that these Tax Case Appeals are covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. Recording this submission, the Court dismissed the appeals. The Court explicitly stated that the questions of law raised in these appeals are kept open to be decided at a later point in time. There was no order as to costs. Therefore, no finding was rendered on any of the issues raised, and no operative directions were issued concerning the reassessment proceedings themselves.

What were the facts?

The appeals were filed by the Commissioner of Income Tax, Trichy (Revenue) against the orders of the Income Tax Appellate Tribunal, Madras "C" Bench, dated 30.04.2014. The appeals challenged the Tribunal's decisions in ITA Nos. 1211/Mds/2013, 1212/Mds/2013, and 1213/Mds/2013. The assessee is Saranathan Academy of Higher Education. The assessment years involved are 2005-2006, 2006-2007, and 2008-2009. The core of the dispute revolves around the validity of reassessment proceedings initiated by the Revenue. The High Court admitted these appeals on substantial questions of law on 20.01.2016.

What were the issues?

The High Court had to decide the following substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment proceedings initiated for the assessment year 2005-2006 is bad in law on the grounds that it was initiated after a period of four years from the end of the financial year when the notice under section 148 was issued well within the period of four years on 12.6.2009? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment proceedings initiated for the assessment year 2006-2007 and 2008-2009 is bad in law on the ground that there is no failure on the part of the assessee to furnish full and true particulars at the time of assessment and reassessment proceedings were not based on any fresh material when the explanations 1 to section 147 stipulates that mere furnishing of particulars at the time of return does not amount to full and true disclosure? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment proceedings initiated within the period of four years for the assessment year 2008-2009 is bad in law when no assessment under section 143(3) made and only an initiation under section 143(1) was passed and when the explanation 1 in section 147 which stipulates that mere furnishing of a particular at the time of return, cannot be treated as full and true disclosure of the assessee? The Revenue argued that the reassessment proceedings were valid. The Assessee's contentions, as reflected in the questions of law, were that the reassessment proceedings were bad in law due to initiation after the prescribed period, lack of failure to disclose true particulars, absence of fresh material, and the nature of the original assessment.

Which sections of the Income-tax Act were involved?

Section 260A,Section 148,Section 147,Section 143(3),Section 143(1)

AI-generated summary — verify with the full judgment below

T.C.A.Nos.1231 to 1233 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 05.11.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.Nos.1231 to 1233 of 2015 Commissioner of Income Tax Trichy

.. Appellant in all T.C.As Vs. Saranathan Academy of Higher Education Venkateswara Nagar, Panjappur Tiruchirapalli – 620 012. .. Respondent in all T.C.As Prayer in T.C.A.No.1231 of 2015: Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal Madras "C" Bench, dated 30.04.2014 in I.T.A.No.1211/Mds/2013; Prayer in T.C.A.No.1232 of 2015: Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal Madras "C" Bench, dated 30.04.2014 in I.T.A.No.1212/Mds/2013; Prayer in T.C.A.No.1233 of 2015: Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal Madras "C" Bench, dated 30.04.2014 in I.T.A.No.1213/Mds/2013. Page 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.1231 to 1233 of 2015 For the Appellant : Mrs.V.Pushpa in all T.C.As Senior Standing Counsel For the Respondent : Mr.A.S.Sriraman in all T.C.As COMMON JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) These tax case appeals were admitted by this Court on 20.01.2016 on the following substantial questions of law:- "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment proceedings initiated for the assessment year 2005-2006 is bad in law on the grounds that it was initiated after a period of four years from the end of the financial year when the notice under section 148 was issued well within the period of four years on 12.6.2009? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment proceedings initiated for the assessment year 2006-2007 and 2008-2009 is bad in law on the ground that there is no failure on the part of the assessee to furnish full and true particulars at the time of assessment and reassessment proceedings were not based on any fresh material when the explanations 1 to section 147 stipulates that mere furnishing of particulars at the time of return does not amount to full and true disclosure? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment proceedings initiated within the period of four years for the assessment year 2008-2009 is bad in law when no assessment under section 143(3) made and only an initiation Page 2 of 4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.1231 to 1233 of 2015 under section 143(1) was passed and when the explanation 1 in section 147 which stipulates that mere furnishing of a particular at the time of return, cannot be treated as full and true disclosure of the assessee?" 2. It is submitted by Mrs.V.Pushpa, learned Senior Standing Counsel appearing for the appellant Revenue that these Tax Case Appeals are covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. 3. Recording the same, these appeals stand dismissed as Low Tax Effect. The questions of law raised in these appeals are kept open to be decided at the later point of time. There shall be no order as to costs. (R.S.K., J.) (C.S.N, J) 05.11.2024 Neutral Citation:Yes/No drm Page 3 of 4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.1231 to 1233 of 2015 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.Nos.1231 to 1233 of 2015 05.11.2024

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