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[Cites 4, Cited by 1]

Madras High Court

Commissioner Of Income Tax vs M/S Tirupathy Construction Company on 29 August, 2022

Author: R.Mahadevan

Bench: R. Mahadevan, Mohammed Shaffiq

                                                                             T.C.A.Nos.320 and 321 of 2014




                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED : 29.08.2022

                                                         CORAM :

                           THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                              AND
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                             T.C.A.Nos.320 and 321 of 2014


                  Commissioner of Income Tax,
                  Chennai.                                                   ... Appellant in both
                  TCAs

                                                          Versus

                  M/s Tirupathy Construction Company,
                  K.L.J.Associates,
                  #45/B-36 Strotten Muthauah St.
                  Sowcarpet, Chennai 600 079.
                                                                     ... Respondent in both TCAs

                            Appeals preferred under Section 260A of the Income Tax Act, 1961,
                  against the order dated 23.08.2013 passed by the Income Tax Appellate
                  Tribunal, “B” Bench, Chennai, in I.T.A.Nos.1203 and 1204/Mds/2013.
                            For Appellant            :      Mr.M.Swaminathan
                                                            Senior Standing Counsel
                                                            Mrs.V.Pushpa,
                                                            Standing Counsel in both TCAs

                            For Respondent           :      Mr.S.Ramesh Kumar in both TCAs

                  Page 1/4
https://www.mhc.tn.gov.in/judis
                                                                                  T.C.A.Nos.320 and 321 of 2014




                                               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 23.08.2013 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.Nos.1203 and 1204/Mds/2013, relating to the assessment years 2006-07 and 2007-08.

2. By order dated 08.12.2014, this court admitted the aforesaid tax case appeals on the following substantial question of law:

" Whether the Tribunal was right in holding that penalty under Section 271 (1) (c) of the Act cannot be levied on the assessee on the ground that filing of return under Section 153C of the Act is deemed to be a return under Section 139 of the Act and consequently, the explanation 5A(ii)(b) to Section 271 (1) (c) of the Act cannot be invoked to levy penalty and on the ground that the assessment is completed on the basis of the return of income? "

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 Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.320 and 321 of 2014 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 question of law for determination in appropriate cases. No costs.

                                                                   (R.M.D., J.)     (M.S.Q., J.)
                                                                             29.08.2022

                  Internet : Yes
                  Index : Yes / No
                  av

                  To

1. The Income Tax Appellate Tribunal, “B” Bench, Chennai.

2. The Commissioner of Income Tax, Chennai.

Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.320 and 321 of 2014 R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

av

3. The Deputy Commissioner of Income-tax, Central Circle, Salem.

4. The Commissioner of Income Tax (Appeals), Salem.

T.C.A.Nos.320 and 321 of 2014 29.08.2022 Page 4/4 https://www.mhc.tn.gov.in/judis