PRINCIPAL COMMISSIONER OF IN vs. VANDANA

T.C.A.No.315 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 25.07.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.315 of 2021 Principal Commissioner of Income Tax, Corporate Ward-4(1), Chennai - 600 034. ... Appellant

Versus Vandana

... Respondent

Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 31.01.2020 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.1033/Chny/2019. For Appellant : Mr.Karthik Ranganathan Standing Counsel For Respondent : No appearance

Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.315 of 2021 JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 31.01.2020 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.1033/Chny/2019, relating to the assessment year 2015-16. 2.By order dated 14.06.2021, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right and justified in setting aside the order passed by the Assessing Officer to re-examine the matter when the Assessing Officer has already duly examined the matter before passing the assessment order. (ii) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right and justified in not dismissing the appeal of the assessee as done by the ITAT "A" Bench, Chennai in ITA.No.827/CHNY/2019 dated 11.06.2019 in the case of Smt.Rekha Jain, and by ITAT Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.315 of 2021 "C" Bench, Chennai in ITA.No.3009/Chny/2018 in the case of Harish Kumar HUF, when the facts and circumstances of those cases are exactly similar to the present case. (iii) Whether on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal was right and justified in remitting the issue back to the file of the Assessing Officer and shifting the onus to the Revenue with a direction that the Assessing Officer shall bring on record the role of the assessee in promoting the company and the relationship of the assessee, if any with the promoters, role of the assessee in inflating the price of share etc." 3.When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeal 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). It is also submitted that the tax effect in this appeal is less than the threshold limit. Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.315 of 2021 4.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 25.07.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. 2. Principal Commissioner of Income Tax, Corporate Ward-4(1), Chennai - 600 034. 3. The Income Tax Officer, Non Corporate Circle - 9(5), Chennai.