COMMISSIONER OF INCOME TAX vs. M/S.HANDLOOM HERITAGE LIMITED

TCA.Nos.377, 378, 380, 386 and 392 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal Nos.377, 378, 380, 386 and 392 of 2015 and M.P.Nos.1, 1, 1 and 1 of 2015 Commissioner of Income Tax Central Circle II, Chennai 600 034. ...Appellant in all TCAs -vs- M/s. Handloom Heritage Limited, No.37, Rajamannar Street, T.Nagar, Chennai 600 017, PAN: AAACH0890A. ...Respondent in all TCAs Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the common order dated 18.05.2011 passed by the Income Tax Appellate Tribunal, Chennai “B” Bench, in I.T.A.Nos.1792, 1761, 1763, 1794 and 1800/Mds/2010. For Appellant : Mr.Karthick Ranganathan Senior Standing Counsel (in all TCAs) For Respondent : Mr. K.Ravi (in all TCAs)

1/5 https://www.mhc.tn.gov.in/judis TCA.Nos.377, 378, 380, 386 and 392 of 2015 COMMON JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) These tax case appeals have been filed by the appellant / Revenue, challenging the common order dated 18.05.2011 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in in I.T.A.Nos.1792, 1761, 1763, 1794 and 1800/Mds/2010, relating to the respective assessment years 1999- 2000, 1999-2000, 2001-2002, 2001-2002, 2001-2002. 2. By order dated 22.02.2016, this court admitted the aforesaid tax case appeals on the following substantial questions of law: TCA.Nos.377 and 386 of 2015:- "Whether in the facts and circumstances of the case, the Appellate Tribunal was right in deleting the additions made on account of fixed deposit receipts and corresponding interest thereon held in the names of various weavers and which were found with the assessee company during the course of search action?" 2/5 https://www.mhc.tn.gov.in/judis TCA.Nos.377, 378, 380, 386 and 392 of 2015 TCA.Nos.378 and 380 of 2015:- "Whether in the facts and circumstances of the case, the Appellate Tribunal was right in deleting the disallowance of 20 to 25% made by the Commissioner of Income Tax (Appeals) as inflating expenses made by the assessee company?" TCA.No.392 of 2015:- "Whether in the facts and circumstances of the case, the Appellate Tribunal was right in quashing the revision orders made under Section 263 by the Commissioner of Income Tax as infructuous?" 3. When the matters were 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 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). It is also submitted that the tax effect in these appeals is less than the threshold limit. 3/5 https://www.mhc.tn.gov.in/judis TCA.Nos.377, 378, 380, 386 and 392 of 2015 4. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. Consequently, connected miscellaneous petitions are closed. [R.M.D,J.] [M.S.Q, J.] 01.08.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2. The Commissioner of Income Tax Central Circle II, Chennai 600 034. 3. The Assistant Commissioner of Income Tax, Central Circle - II(5), Chennai - 34. 4/5 https://www.mhc.tn.gov.in/judis TCA.Nos.377, 378, 380, 386 and 392 of 2015 R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. av Tax Case Appeal Nos.377, 378, 380, 386 and 392 of 2015 01.08.2022 5/5 https://www.mhc.tn.gov.in/judis