PRINCIPAL COMMISSIONER OF vs. M/S.GIMPEX LTD

T.C.A.Nos.680 & 681 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos.680 & 681 of 2016 and CMP.No.14356 of 2016 Principal Commissioner of Income Tax, Central - I, No.108, Nungambakkam High Road, Chennai 600 034. ... Appellant in both TCAs Versus M/s. Gimpex Ltd., Gimpex House, 181, Linghi Chetty Street, Chennai - 600 001. PAN: AAA CG 2482 P ... Respondent in both TCAs Appeals preferred under Section 260A of the Income Tax Act, 1961, against the order dated 29.10.2015 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.Nos.2641 & 2642/Mds/2014. For Appellant : Mr.J.Narayanaswamy Standing Counsel in both TCAs For Respondent : Mr. Ashokpathy for M/s.Pass Associates in both TCAs Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.680 & 681 of 2016

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 29.10.2015 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.Nos.2641 & 2642/Mds/2014, relating to the assessment years 2000-01 and 2001-02.

2.By order dated 28.09.2016, this court admitted the aforesaid tax case appeals on the following substantial questions of law: “(i) Whether on the facts and circumstances of the case, the Tribunal is correct in law in holding that the Assessing Officer loses his jurisdiction under Section 147, when there is no addition(s) on account of escapement of income was mad as per reasons recorded and cannot proceed with some other issue(s) of addition/disallowance and the consequent assessment is legally not valid? (ii) Whether on the facts and circumstances of the case, the Appellate Tribunal is correct in law in not applying the provisions of the Explanation 3 to Section 147 of the Income tax Act? (iii) Whether on the facts and circumstances of the case the Appellate Tribunal was right in quashing the reassessment when the assesee has filed a return of income in response to the 148 notice Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.680 & 681 of 2016 and participated in hearing of reassessment proceedings?" 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. 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 petition is closed. (R.M.D., J.) (M.S.Q., J.) 23.08.2022

Internet : Yes

Index : Yes / No Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.680 & 681 of 2016 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. 2. The Principal Commissioner of Income Tax, Central - I, No.108, Nungambakkam High Road, Chennai 600 034. 3. The Assistant Commissioner of Income-tax, Company Circle - 11(2), Room No.512, Wanaparthy Block, 121, MG Road, Chennai - 34.