CIT Vs Shri R. Rajinikanth (Madras High Court)
In this case When the matters are taken up for hearing, learned Junior Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No. 17/2019 dated 8th August 2019, 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).
In the instant cases, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeals filed by the Revenue are dismissed, as withdrawn, keeping open the substantial questions of law for determination in appropriate cases.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
These Tax Case Appeals have been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, ‘D’ Bench, Chennai, dated 26.7.2013 made in ITA Nos.64, 65 and 66/Mds/2012, for the Assessment Years 2002-2003, 2003-2004 and 2004-2005, by raising the following substantial questions of law:
“(i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in deleting the penalty levied under Section 271(1)(c) on the additional income admitted by the assessee by filing a revised return consequent to
survey?
(ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the said admission of income was only an estimated income without appreciating the fact that there was no material evidence produced by the assessee in support of the claim of expenditure?
(iii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in deleting the penalty levied under Section 271(1)(c) of the Act, when the assessee had reversed the claim of bad debts consequent to survey operations under Section 153A of the Act?
(iv) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the quantum issue has been decided in favour of the assessee, hence penalty will not survive without appreciating the fact that the quantum addition was not deleted only the finding regarding the head of income under which the income has to be assessed?”
2. When the matters are taken up for hearing, learned Junior Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, 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).
3. In the instant cases, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeals filed by the Revenue are dismissed, as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs.
