COMMISSIONER OF INCOME TAX vs. M/S RM.K.VISWANATHA PILLAI A

T.C.A.Nos.724, 726 and 728 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 16.08.2022 CORAM THE HON'BLE Mr. JUSTICE R. MAHADEVAN AND THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos.724, 726 and 728 of 2019 AND C.M.P.Nos.21172 and 21191 of 2019 The Commissioner of Income Tax Central Circle IV Chennai .. Appellant in all T.C.A.s Vs. M/s.Rm.K.Viswanatha Pillai & Sons No.176F, Trivandrum Road Tirunelveli 627 003 PAN : AABFR 1307C .. Respondent in all T.C.A.s Tax Case Appeals filed under Section 260-A of the Income Tax Act, 1961, against the common order dated 01.06.2016 passed by the Income Tax Appellate Tribunal 'B' Bench, Chennai, in respective I.T.A.Nos. 1786/Mds/2014, 1784/Mds/2014 and 1881/Mds/2014. For Appellant in all T.C.A.s Mr.M.Swaminathan Mrs.V.Pushpa Standing Counsels For Respondent in all T.C.A.s Mr.R.Venkatanarayan for M/s.Subbaraya Aiyar 1/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos.724, 726 and 728 of 2019 C O M M O N J U D G M E N T (Judgment was delivered by R. MAHADEVAN, J.) These Tax Case Appeals arise from the common order dated 01.06.2016 passed by the Income Tax Appellate Tribunal 'B' Bench, Chennai, in respective I.T.A.Nos.1786/Mds/2014, 1784/Mds/2014 and 1881/Mds/2014, relating to the respective assessment years 2008-09, 2006-07 and 2009-10 by raising the following substantial questions of law: T.C.A.No.724 of 2019 : “(i)Whether on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was legally justified in holding that the deduction of adhoc provision from the book value of stock to arrive the closing stock is permissible? (ii)Whether on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was correct in holding that assessee's method of valuation is acceptable when the Income Tax Appellate Tribunal itself has given a finding that such valuation is based on assessee's perception only not based on any acceptable standard of accounting? (iii)Whether on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal is right in giving relief on the ground that Assessing Officer failed to reconcile such stock with the by-numbers given when the assessee itself failed to do so during the course of search, and 2/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos.724, 726 and 728 of 2019 thus the burden remains undischarged on the assessee who made the said assertion?” T.C.A.No.726 of 2019 : “(i)Whether on the facts and in the circumstances of the case, u/s.153A the Assessing Officer is not eligible to bring to tax all the income which was hitherto untaxed besides the income detected on account of search? (ii)Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in holding that assessment can be done u/s 153A only based on incriminating material found during the course of search ignoring the fact that under the new procedure of block assessment, it is the 'total income' that is to be determined and not merely the income relating to search? (iii)Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal has correctly interpreted the wordings of Section 153A which are different from that of Section 158BC?” T.C.A.No.728 of 2019 : “Whether on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was right in holding that explanation 1 to Section 32 will not apply for the repair and renovation expenditure incurred by the assessee on the leasehold land towards interior decoration, flooring, painting and temporary partition etc.?” 3. When these matters were taken up for consideration, the learned counsel for the appellant/Revenue brought to the notice of this court the 3/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos.724, 726 and 728 of 2019 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 are 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 petitions are closed. [R.M.D,J.] [M.S.Q, J.] gya 16.08.2022

To 1.The Commissioner of Income Tax 4/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos.724, 726 and 728 of 2019 Central Circle IV Chennai 2.The Deputy Commissioner of Income Tax Central Circle IV(1) Chennai 3.The Commissioner of Income Tax Appeals (Central)-I Chennai 4.The Income Tax Appellate Tribunal 'B' Bench Chennai R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. 5/6 https://www.mhc.tn.gov.in/judis T.C.A.Nos.724, 726 and 728 of 2019 gya T.C.A.Nos.724, 726 and 728 of 2019 16.08.2022 (2/2) 6/6 https://www.mhc.tn.gov.in/judis