Madras High Court
Commissioner Of Wealth Tax vs T.L.Prashanth on 24 February, 2021
T.C.A.No.207 of 2012
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 24.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.207 of 2012
Commissioner of Wealth Tax,
Chennai. ... Appellant
Vs.
T.L.Prashanth ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Chennai,
"D" Bench, dated 25.05.2009 in W.T.A.No.30/Mds/2008.
For Appellant : Mr.M.Swaminathan,
Senior Standing Counsel
For Respondent : Mr.M.P.Senthil Kumar
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
Challenging the order passed in W.T.A.No.30/Mds/2008 for the
assessment year 2004-05 on the file of the Income Tax Appellate
Tribunal, Chennai "D" Bench, the Department has filed the above appeal.
2.By order dated 25.05.2009, the Income Tax Appellate Tribunal
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T.C.A.No.207 of 2012
finding that the appeal fell within the monetary limit prescribed by the
CBDT, dismissed the appeal following the Board's Circular.
3.The appeal was admitted on the following substantial question
of law:
“Whether on the facts and circumstances of the case,
the Tribunal was right in dismissing the appeal filed by
revenue based on low tax effect when the CBDT instructions
have specifically excluded cases where there has been an
audit objection from the minimum tax effect?”
4.Mr.M.Swaminathan, learned senior standing counsel appearing
for the appellant submitted that there was audit objection in the case of
the assessee and that the audit objection was also accepted and in such
case, the order passed by the Tribunal dismissing the appeal stating that
the appeal fell within the monetary limit, should be set aside and the
matter should be remitted back to the Tribunal for fresh consideration.
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T.C.A.No.207 of 2012
5.Mr.M.P.Senthil Kumar, learned counsel appearing for the
respondent – assessee submitted that the stand now taken by the
Department in this appeal was not taken before the Income Tax
Appellate Tribunal and that the representative of the Department did not
produce any supportive documents before the Tribunal to establish that
that there was audit objection.
6.It is pertinent to note that even in the grounds of appeal, the
Department has raised it as a ground stating that there was audit
objection and the same is exempted as per the Board's instruction
No.2/2005 dated 24.10.2005 and as such the tax effect being below Rs.2
lakhs would not be a bar to filing of appeal.
7.The learned senior standing counsel appearing for the
Department submitted that since the Tribunal has not gone into the merits
of the matter, it would be appropriate to remit the matter back to the
Tribunal for fresh consideration.
8.Since the case of the assessee, though fell within the monetary
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T.C.A.No.207 of 2012
limit prescribed by the CBDT, since it also fell within the exceptions
carved out in the Board's Circular dated 24.10.2005, we are of the
considered view that the order passed by the Tribunal should be set aside
and the matter should be remitted back to the Tribunal for fresh
consideration. Accordingly, the order dated 25.05.2009 passed by the
Income Tax Appellate Tribunal is set aside and the matter is remitted
back to the Tribunal for fresh consideration. The respondent – assessee is
at liberty to raise all the defences available to him before the Tribunal.
The Tribunal is directed to decide the matter afresh, after giving
opportunity of hearing to both sides.
9.With these observations, the Tax Case Appeal is allowed. No
costs.
[M.D., J.] [T.V.T.S., J.]
Index : Yes/No 24.02.2021
Internet : Yes
va
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T.C.A.No.207 of 2012
To
The Income Tax Appellate Tribunal, Chennai, "D" Bench
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T.C.A.No.207 of 2012
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
va
T.C.A.No.207 of 2012
24.02.2021
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