COMMISSIONER OF INCOME TAX vs. SHRI.R.KRISHNAMOORTHY

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TCA/572/2016HC Madras15 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal, stating that the matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024. The substantial questions of law arising in the appeal were kept open to be decided at a later point of time. No decision was made on the merits of the substantial questions of law. The operative direction was to dismiss the appeal on the ground of low tax effect.

What were the facts?

The appeal is filed by the Commissioner of Income Tax, Coimbatore (appellant/Revenue) against the order of the Income Tax Appellate Tribunal, Madras Bench, Chennai, dated 04.02.2015. The Tribunal had cancelled a penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, against R. Krishnamoorthy (respondent/assessee). The appeal was admitted by the High Court on substantial questions of law. Subsequently, the Revenue submitted that the matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024.

What were the issues?

1. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in cancelling the penalty levied under Section 271(1)(c) for concealing the particulars of income? 2. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in cancelling the penalty levied without considering Explanation 1 of Section 271(1)(c) of the Income Tax Act? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue argued that the appeal is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.No.572 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.10.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.No.572 of 2016 The Commissioner of Income Tax Mo.63, Race Course Road Coimbatore. .. Appellant Vs. R.Krishnamoorthy c/o. S.Sridhar, Advocate 112/1, Periyar Street Erode – 1, PAN: ADW PK 0624 M .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal, Madras “D”

Bench,

Chennai

dated

04.02.2015

passed

in I.T.A.No.355/Mds/2014. For the Appellant : Mr.Karthi Ranganathan Senior Standing Counsel For the Respondent : Mr.G.Guruprasath JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 29.08.2016 by this Court on the following substantial questions of law:- Page 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.572 of 2016 "1. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in cancelling the penalty levied under Section 271(1)(c) for concealing the particulars of income? 2. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in cancelling the penalty levied without considering Explanation 1 of Section 271(1)(c) of the Income Tax Act?" 2. It is submitted by the learned Senior Standing Counsel appearing for the appellant Revenue that this matter is covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. 3. Hence, this appeal stands dismissed, as covered under the low tax effect and the substantial questions of law arising in this appeal are kept open to be decided at the later point of time. There shall be no order as to costs. (R.S.K., J.) (C.S.N, J) 15.10.2024 Page 2 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.572 of 2016 Neutral Citation:Yes/No drm Page 3 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.572 of 2016 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.572 of 2016 15.10.2024 Page 4 of 4 https://www.mhc.tn.gov.in/judis

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