PRINCIPAL COMMISSIONER OF IN vs. SHRI.A.KANNAN

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TCA/523/2019HC Madras31 July 2019Bench: Hon`ble Mr Justice T. S. SIVAGNANAM3 pages
AI SummaryWithdrawn

What did the High Court hold?

The Revenue sought permission to withdraw the appeal. The learned Senior Standing Counsel for the Revenue stated that the withdrawal was on account of a low tax effect and made an endorsement to that effect. Consequently, the High Court dismissed the appeal as withdrawn. The substantial questions of law were left open, meaning they were not decided on merits. No costs were awarded. The operative direction was the dismissal of the appeal as withdrawn.

What were the facts?

The Revenue, specifically the Principal Commissioner of Income Tax, Puducherry-3, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated May 31, 2017, passed by the Income Tax Appellate Tribunal (ITAT), Madras 'A' Bench. The appeal pertained to the assessment year 2009-10. The ITAT's order had set aside a revision order passed under Section 263 and restored the assessment order originally passed by the Assessing Officer. The dispute involved issues concerning cash deposits made by the assessee, Shri A. Kannan, in his bank account and undisclosed interest income. The Revenue sought to challenge the ITAT's findings on these matters.

What were the issues?

1. Whether, in the facts and circumstances of the case, the Tribunal was right in setting aside the revision order passed under Section 263 and restoring the assessment order passed by the Assessing Officer? (Question of law) 2. Whether, in the facts and circumstances of the case, the Tribunal is correct in not taking into cognizance of findings in the order under Section 263 dated 15.11.2016 on the issue of cash deposits made by the assessee in his bank account and on the issue of undisclosed interest income of the assessee? (Question of mixed law and fact) Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue argued that the Tribunal erred in setting aside the revision order and restoring the assessment order. They also contended that the Tribunal incorrectly disregarded the findings made in the Section 263 revision order concerning cash deposits and undisclosed interest income. The Revenue sought to challenge the ITAT's decision on these grounds.

Which sections of the Income-tax Act were involved?

Section 260A,Section 263

AI-generated summary — verify with the full judgment below

1 In the High Court of Judicature at Madras Dated : 31.7.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.523 of 2019 The Principal Commissioner of Income Tax, Puducherry-3. ...Appellant Vs Shri.A.Kannan, Vadamalayan Finance, Pondicherry-5. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 31.5.2017 made in ITA.No.31/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras 'A' Bench for the assessment year 2009-10. For Appellant : Mr.T.R.Senthilkumar, SSC & Ms.K.G.Usharani, SC For Respondent: Mr.A.S.Sriraman Judgment was delivered by

T.S.Sivagnanam,J

We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel as well as Ms.K.G.Usharani, learned Standing Counsel appearing for the Revenue and Mr.A.S.Sriraman, learned counsel appearing for the respondent – assessee. http://www.judis.nic.in 2 2. This appeal is filed by the Revenue under Section 260A of the Income Tax Act, 1961 (hereinafter called the Act) against the order dated 31.5.2017 made in ITA.No.31/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras 'A' Bench for the assessment year 2009-10. 3. The Revenue has filed this appeal by raising the following substantial questions of law : “i. Whether, in the facts and circumstances of the case, the Tribunal was right in setting aside the revision order passed under Section 263 and restoring the assessment order passed by the Assessing Officer? And ii. Whether, in the facts and circumstances of the case, the Tribunal is correct in not taking into cognizance of findings in the order under Section 263 dated 15.11.2016 on the issue of cash deposits made by the assessee in his bank account and on the issue of undisclosed interest income of the assessee?” 4. The learned Senior Standing Counsel appearing for the Revenue seeks permission to withdraw this appeal on account of low tax effect. He has also made an endorsement in the bundle today to that effect. 5. Hence, the above tax case appeal is dismissed as withdrawn. The substantial questions of law are left open. No costs. 31.7.2019 RS http://www.judis.nic.in 3 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS Internet: Yes To The Income Tax Appellate Tribunal, Chennai 'A' Bench. TCA.No.523 of 2019 31.7.2019 http://www.judis.nic.in

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