THE COMMISSIONER OF INCOME vs. S.PARASMAL GIDIA

TCA.No.153 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.03.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.153 of 2021 The Commissioner of Income Tax, Trichy. ...Appellant Vs Shri S Parasmal Gidia ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 14.09.2017 passed by the Income Tax Appellate Tribunal, 'D' Bench, Chennai in I.T.(SS) A.No.4/Mds/2017 for the block assessment period 1997 to 2003. For Appellant : Mr.M.Swaminathan, SSC For Respondent : Mr.M.P.Senthil Kumar 1/6 http://www.judis.nic.in TCA.No.153 of 2021 JUDGMENT (Delivered by

T.S.SIVAGNANAM

,J ) This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act), is directed against the order dated 14.09.2017 made in I.T.(SS) A.No.4/Mds/2017 on the file of the Income Tax Appellate Tribunal, 'D' Bench, Chennai ('the Tribunal' for brevity) for the block assessment period 1997 to 2003. 2. The Revenue has raised the following substantial questions of law for consideration: "1. Whether the volunatry admission made by the Assessee during the course of search loses its evidentiary value and is not binding on the assessee because of the subsequent retraction of the statement made after two years could render the assessment in valid? 2. Whether in the absence of any material evidence produced by the assessee to the effect of sale of jewelry (difference in jewellery found and jewellery admitted in the W.T return) would the onus shift from the assessee to that of the department for proving that utilization of the sale 2/6 http://www.judis.nic.in TCA.No.153 of 2021 proceeds for the purpose other than investment into money lending business is sustainable?" 3. We have heard Mr.M.Swaminathan, learned Senior Standing Counsel appearing for the appellant-Revenue and Mr.M.P.Senthil Kumar, learned counsel for the respondent. 4. The Assessing Officer completed the block assessment vide order dated 31.12.2009. Aggrieved by the same, the assessee preferred appeal before the Commissioner of Income Tax (Appeals) - 2, Trichy [CIT(A)]. The CIT(A) took note of the order passed by the Tribunal in the earlier round in ITA.No.5/Mds/2007 dated 17.10.2008 and by extracting the relevant paragraph of the said order, allowed the appeal. Aggrieved by the same, the Revenue preferred appeal before the Tribunal and the Tribunal confirmed the order passed by the CIT(A). This is how the Revenue is before us by way of this appeal. 5. On a perusal of the order passed by the Tribunal in the earlier round in ITA.No.5/Mds/2007 dated 17.10.2008, we find that there was a positive direction to the Assessing Officer to grant certain reliefs to the 3/6 http://www.judis.nic.in TCA.No.153 of 2021 assessee. The operative portion of the said order reads as follows: "Therefore, we set aside the order of the CIT(Appeals) and remit the matter to the Assessing Officer with a direction to examine the search document carefully and verify whether cash was available with the assessee and sale proceeds from sale of jewellery etc have been used for acquiring other assets and if not found so, then corresponding credit should be given towards unaccounted money lending business. In the light of above facts, I hold that the Assessing Officer is directed to give credit for the sale value of jewellery at Rs.96,23,565/- against the investment in money lending business." 6. On a reading of the above direction, it is clear that the Assessing Officer is bound to follow the same. Admittedly, the Revenue did not prefer any appeal against the above said order passed by the Tribunal. Therefore, the order and direction binds the Revenue. This fact was noted by the Tribunal in the impugned order and in our opinion, the Tribunal rightly dismissed the appeal filed by the Revenue. 4/6 http://www.judis.nic.in TCA.No.153 of 2021 7. Considering the facts and circumstances of the case, we find that there are no good grounds to interfere with the order passed by the Tribunal. Accordingly, the Tax Case Appeal is dismissed and the substantial questions of law are answered against the Revenue. No costs. (T.S.S.,J.) (R.N.M.,J.) 08.03.2021 Index: Yes/No Internet:Yes/No hvk To 1. The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 2. The Commissioner of Income Tax, Trichy. 5/6 http://www.judis.nic.in TCA.No.153 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk TCA.No.153 of 2021 08.03.2021 6/6 http://www.judis.nic.in