Principal Commissioner of Income Tax vs. Shanmuganathan Rajasekaran,

PDF · subscribers
TCA/76/2026HC Madras21 July 2026Bench: Honourable The CHIEF JUSTICE3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the tax case appeal filed by the Revenue has become infructuous. This was based on the submission by the learned counsel for the respondent that a fresh assessment order for the assessment year 2020-21 had already been passed on 23.02.2026, giving effect to the ITAT's order which had set aside the Section 263 order. The Court noted that even if the appeal were allowed, it would only result in the passing of a fresh assessment order, which had already been done. Therefore, the appeal was dismissed as having rendered infructuous. The substantial questions of law that arose in the appeal were expressly left open to be decided in an appropriate case.

What were the facts?

The Revenue, Principal Commissioner of Income Tax, Coimbatore, filed a Tax Case Appeal under Section 260A of the Income Tax Act, 1961, before the High Court of Judicature at Madras. The appeal challenged an order dated 31.10.2025 passed by the Income Tax Appellate Tribunal (ITAT), Madras 'C' Bench, in ITA No.1897/Chny/2025. The ITAT's order had set aside a Section 263 order dated 07.10.2024 passed by the Principal Commissioner. The assessment year under consideration was 2020-21. The respondent in the appeal was Shanmuganathan Rajasekaran.

What were the issues?

1. Whether the appeal filed by the Revenue has become infructuous. (Question of law) Assessee's contention: The learned counsel for the respondent (assessee) submitted that the order passed under Section 263 by the Principal Commissioner has already been given effect to by the passing of a fresh assessment order dated 23.02.2026. Therefore, the prayer in the present tax case appeal has become infructuous. Revenue's contention: The judgment does not record any specific contention from the Revenue regarding the appeal being infructuous. However, the filing of the appeal itself indicates a challenge to the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 260A,Section 263

AI-generated summary — verify with the full judgment below

TCA.No.76 of 2026 __________ Page 1 of 3 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21-07-2026 CORAM THE HON'BLE MR.SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE G.ARUL MURUGAN TCA.No.76 of 2026 Principal Commissioner of Income Tax, Coimbatore. ..Appellant Vs Shanmuganathan Rajasekaran, 10, 2nd Street, Sivananda Colony, Coimbatore-641 012. ..Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961, as against the order in ITA.No.1897/Chny/2025 for the Assessment Year 2020-21 on the file of the Income Tax Appellate Tribunal Madras C Bench, Chennai, dated 31-10-2025. For Appellant: Mr.V.Mahalingam Senior Standing Counsel For Respondent: Mr.A.S.Sriraman JUDGMENT (Judgment of the Court was delivered by The Hon’ble Chief Justice) The present tax case appeal has been filed by the Revenue challenging the order dated 31.10.2025 passed by the Income Tax https://www.mhc.tn.gov.in/judis ( Uploaded on: 24/07/2026 11:45:40 am ) TCA.No.76 of 2026 __________ Page 2 of 3 Appellate Tribunal, Madras ‘C’ Bench (ITAT) in ITA No.1897/Chny/2025, setting aside the Section 263 order dated 07.10.2024 passed by the Principal Commissioner. 2. Learned counsel for the respondent submits that since the order passed under Section 263 has been given effect to, by passing a fresh assessment order dated 23.02.2026, the prayer in the present tax case appeal has become infructuous. 3. In view of the submission made by learned counsel for the respondent, this tax case appeal is dismissed as having rendered infructuous. However, the substantial questions of law that arose in the present appeal are left open to be decided in appropriate case. Even if the tax case appeal is allowed, it will only result in passing of the fresh assessment order, which has already been passed vide assessment order dated 23.02.2026. (SUSHRUT ARVIND DHARMADHIKARI, C.J.) (G.ARUL MURUGAN J.) 21-07-2026 Index: Yes/No Speaking/Non-speaking order hvk https://www.mhc.tn.gov.in/judis ( Uploaded on: 24/07/2026 11:45:40 am ) TCA.No.76 of 2026 __________ Page 3 of 3 SUSHRUT ARVIND DHARMADHIKARI, CJ. AND G.ARUL MURUGAN, J. hvk TCA.No.76 of 2026 21-07-2026 https://www.mhc.tn.gov.in/judis ( Uploaded on: 24/07/2026 11:45:40 am )

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →