PRINCIPAL COMMISSIONER OF I vs. R.P.DARMALINGAM

TCA.No.551 of2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 23.03.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.551 of 2019 Principal Commissioner of Income Tax, Central 2, No.121, Mahatma Gandhi Road, Chennai - 600 034. ...Appellant Vs R.P.Darmalingam ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 05.10.2018 made in ITA.No.1100/Chny/2018 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench, for the assessment year 2009-10. For Appellant: Mr.T.R.Senthil Kumar Senior Standing Counsel For Respondent: Mr.R.Murali JUDGMENT 1/4 http://www.judis.nic.in TCA.No.551 of2019 (Delivered by

T.S.Sivagnanam,J

) This appeal, filed by the Revenue, is directed against the order dated 05.10.2018 made in ITA.No.1100/Chny/2018 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench (for brevity, the Tribunal) for the assessment year 2009-10. 2. The appellant-Revenue has raised the following substantial questions of law for consideration: "1. Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that the assessing officer cannot initiate proceedings under Section 153A of the I.T. Act, where there was no incriminating material found during the course of search operation u/s. 132 of the Act? 2. Whether on the facts and in the circumstances of the case, the ITAT was correct in law in placing reliance on SLP dismissal simpliciter in the case of PCIT v. Meeta Gutgutia (96 taxmann.com 468), when the issue of jurisdiction u/s. 153A of the I.T. Act was not at all before the Hon'ble Supreme Court in the said SLP? 3. Whether on the facts and circumstances of the case, the Appellate Tribunal was justified in deciding the impugned issue on the basis of SLP (Special Leave Petition) dismissal simpliciter by the Hon'be Supreme Court in the case of Meeta 2/4 http://www.judis.nic.in TCA.No.551 of2019 Gutgutia, without taking cognizance of the well settled ratio that SLP dismissal simpliciter has no binding effect, as laid down in the cases of CIT v. Geeta Ramakrishna Mills (P) Ltd. (288 ITR 489)(Mad.) and Kunhayammed v. State of Kerala (245 ITR 360)(SC)?" 3. We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel appearing for the appellant-Revenue and Mr.R.Murali, learned counsel for the respondent. 4. The learned Senior Standing Counsel appearing for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 3/4 http://www.judis.nic.in TCA.No.551 of2019 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S.,J.) (R.N.M.,J.) 23.03.2021 Index: Yes/No Internet:Yes/No hvk To 1. The Income Tax Appellate Tribunal, Madras 'B' Bench. 2. Principal Commissioner of Income Tax, Central 2, No.121, Mahatma Gandhi Road, Chennai - 600 034. TCA.No.551 of 2019 4/4 http://www.judis.nic.in