PRINCIPAL COMMISSIONER OF IN vs. PADHAM J.CHALLANI

1 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.06.2019 CORAM THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM AND THE HON'BLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case (Appeal) Nos.315, 316, 317, 318, 319, 320 and 321 of 2019 and C.M.P.Nos.12001, 12003, 12004, 12005, 12006, 12007 of 2019 Principal Commissioner of Income Tax, Central 1 No.108, Mahatma Gandhi Road, Chennai-600 034. ... Appellant in all the appeals - Vs - Shri Padham J Challani No.23/1, Habibullah Road T.Nagar, Chennai 600 017 PAN : AEKPC 1816N ... Respondent in all the appeals Prayer : Appeals under Section 260A of the Income Tax Act, 1961, against the common order of the Income Tax Appellate Tribunal “A” Bench, Chennai in I.T.A.Nos.719 to 725/Mds/2017 dated 16.08.2017. For Appellant : Mr.T.R.Senthil Kumar, Standing Counsel For Respondent : Mr.K.Ravi JUDGMENT (Judgment of the Court was delivered by T.S.SIVAGNANAM, J.) This appeal by the Revenue is directed against the common order dated 16.08.2017 passed by the Income Tax Appellate Tribunal, Chennai 'A' Bench in I.T.A.Nos.719 to 725/Mds/2017 for the assessment years 2007-08 to 2013-14, raising the following substantial questions of law for consideration. http://www.judis.nic.in 2 “1. Whether the Appellate Tribunal is correct in the law in directing the Assessing Officer to correlate the additions with incriminating material while finalizing set-aside search assessments under the Income Tax Act? 2. Whether the Appellate Tribunal is correct in law in that assessment can be done under Section 153A of the Income Tax Act only based on incriminating material ignoring the fact that under new procedure of search assessment, it is the total income that is to be determined and not merely the income relating to search and incriminating materials? 3. Is it not unwarranted and unrealistic to the Tribunal to set aside the assessment to the file of the Assessing Officer with a direction to do the same again, on the ground of providing natural justice to the assessee, while making the contradictory observation that the assessee himself has non-cooperated during the course of assessment proceedings.? 4. On the facts and in the circumstances of the cases, whether the Appellate Tribunal is correct in not following the recent judgment of the Hon'ble Kerala High Court delivered in the case of K.N.Gopakumar Vs Commissioner of Income Tax (Central)?” 2. Mr.T.R.Senthil Kumar, learned Standing Counsel for the appellant Revenue, fairly submits that these appeals are not being pursued by the Revenue on account of low tax effect. In this regard, the learned counsel has placed before us the Circular issued by the Central Board of Direct Taxes viz., Circular No.3/2018, F.No.279/Misc.142/2007-ITJ (Pt), Government of India, Department of Revenue, Central Board of Direct Taxes dated 11.07.2018, wherein there has been a revision of monetary limits for filing of appeals by the Department before the Tribunal / High Court and Special Leave Petitions / Appeals before http://www.judis.nic.in 3 the Honourable Supreme Court. In terms of the monetary limit fixed in Circular No.3 of 2018, the Revenue would not be entitled to pursue the appeal, if already filed or file fresh appeals for the tax which does not exceed the monetary limit of Rs.50 lakhs. 3. Thus, applying the said circular, the present appeals are dismissed on the ground of low tax effect. Needless to state that the substantial questions of law raised for consideration are left open. No costs. Consequently, connected miscellaneous petitions are also dismissed. (T.S.S.J.) (V.B.S.J.) 07-06-2019 KST Index : Yes/No Internet : Yes/No To 1. Principal Commissioner of Income Tax, Central 1, No.108, Mahatma Gandhi Road, Chennai-600 034 2. The Income Tax Appellate Tribunal, Chennai “A' Bench. http://www.judis.nic.in 4 T.S.SIVAGNANAM, J. AND V.BHAVANI SUBBAROYAN, J. kst T.C.(A) Nos.315 to 321 of 2019 07.06.2019 http://www.judis.nic.in