COMMISSIONER OF INCOME TAX 4 vs. M/S.MURUGAN ARUL ENTERPRISES

TCA.No.840 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 840 of 2015 Commissioner of Income Tax 4, No.121, Nungambakkam High Road, Chennai

.. Appellant Versus M/s. Murugan Arul Enterprises, No.14, Raghuraman Street, Arumbakkam, Chennai 600 106.

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras “A” Bench, dated 10.4.2015 passed in I.T.A.No.2631/Mds/2014 in respect of assessment year 2007-08. For Appellant : M/s.Karthik Ranganathan &

Rajesh Standing Counsel For Respondent : Mr.M.Muralidhara Reddy

1/4 https://www.mhc.tn.gov.in/judis TCA.No.840 of 2015 JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 10.4.2015 passed by the Income Tax Appellate Tribunal Madras “A” Bench in I.T.A.No.2631/Mds/2014 for the assessment year 2007-08. 2. On 05.10.2015 this tax case appeal is admitted by this Court on the following substantial questions of law; ' 1. Whether in the facts and circumstances of the case, the Appellate Tribunal was correct in holding that the reassessment proceedings made under Section 147 is invalid in the absence of any new material or evidence to show that income has escaped assessment? 2. Whether the Appellate Tribunal is justified in annulling the reassessment order without considering Explanation 2(b) to Section 147 in the appellant's case where only intimation under section 143(1) is made and refund is issued to the appellant? and 3. Whether in the facts and circumstances of the case, the Appellate Tribunal was correct in following other High Court judgments without considering jurisdictional High Court judgments?” 2/4 https://www.mhc.tn.gov.in/judis TCA.No.840 of 2015 3. When the matter was 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 this appeal 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 appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. [R.M.D,J.] [M.S.Q., J.] 22.08.2022 msr

Index : Yes / No 3/4 https://www.mhc.tn.gov.in/judis TCA.No.840 of 2015 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. The Income Tax Officer, Business Ward-IV(2), Chennai-34. 2. The Commissioner of Income Tax (A-VIII), Chennai 3. The Income Tax Appellate Tribunal Madras “A” Bench, Chennai. T.C.A.No. 840 of 2015 22.08.2022 4/4 https://www.mhc.tn.gov.in/judis