THE COMMISSIONER OF INCOME vs. M/S. KOCHAR REALTORS PVT L

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TCA/210/2015HC Madras05 June 2020Bench: HON'BLE DR.JUSTICE VINEET KOTHARI4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the learned Senior Standing Counsel for the Revenue brought to its notice a Circular instruction issued by the Central Board of Direct Taxes (CBDT) vide Circular No.17/2019 dated 8th August 2019. This circular stipulates that appeals shall not be filed or pursued by the Department before the High Court if the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). In the present case, the tax effect was stated to be less than this monetary limit. Consequently, the High Court dismissed the appeal filed by the Revenue as withdrawn. The Court explicitly stated that the substantial questions of law are kept open for determination in appropriate cases. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed a Tax Case Appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), 'C' Bench, Chennai, dated 28.10.2013. This order was made in ITA No.51/Mds/2011 for the Assessment Year 2006-2007. The appeal was filed challenging the ITAT's decision to cancel an order passed under Section 263 of the Act. The respondent assessee is M/s. Kochar Realtors Pvt. Ltd. The appeal was listed for hearing before the High Court of Judicature at Madras. The Revenue was represented by its Senior Standing Counsel, while the Respondent assessee did not appear.

What were the issues?

The High Court was to decide the following substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in cancelling the order passed under Section 263 of the Income Tax Act? 2. Is not the finding of the Tribunal bad, especially when reassessment proceedings in a particular year are governed by Section 153 of the Income Tax Act and the principle of res judicata cannot be applied to income tax proceedings? The Revenue contended that the ITAT's finding was bad, particularly in light of Section 153 governing reassessment proceedings and the inapplicability of res judicata in income tax matters. The judgment does not record any specific arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260A,Section 263,Section 153

AI-generated summary — verify with the full judgment below

Judgt. dt. 5.6.2020 in T.C.A.210/2015 CIT v. Kochar Realtors Pvt Ltd 1/4 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 5.6.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARI AND THE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (A) No.210 of 2015 Commissioner of Income Tax Chennai. Appellant Vs. M/s.Kochar Realtors Pvt. Ltd., 18/21, Coats Road, T.Nagar, Chennai 600 017. Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'C' Bench, Chennai, dated 28.10.2013 made in ITA No.51/Mds/2011. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For Respondent : No appearance. J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai, dated 28.10.2013 made in ITA No.51/Mds/2011, for the Assessment Year 2006-2007, by raising the http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.210/2015 CIT v. Kochar Realtors Pvt Ltd 2/4 following substantial questions of law: "(i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in cancelling the order passed under Section 263 of the Income tax Act? (ii) Is not the finding of the Tribunal bad especially when the reassessment proceedings in a particular year are governed by Section 153 of the Income Tax Act and the principle of res judicata cannot be applied to income tax proceedings?" 2. When the matter is taken up for hearing, learned Senior Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.210/2015 CIT v. Kochar Realtors Pvt Ltd 3/4 is dismissed, as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (R.S.K.,J.) 5.6.2020 Index : Yes/No Internet : Yes/No ssk. To 1. Commissioner of Income Tax Chennai. 2. Income Tax Appellate Tribunal, 'C' Bench, Chennai. 3. M/s.Kochar Realtors Pvt. Ltd., 18/21, Coats Road, T.Nagar, Chennai 600 017. http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.210/2015 CIT v. Kochar Realtors Pvt Ltd 4/4 DR.VINEET KOTHARI, J. and R.SURESH KUMAR, J. ssk. Tax Case (A) No.210 of 2015 5.6.2020. http://www.judis.nic.in

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