Madras High Court
The Commissioner Of Income Tax vs M/S.Rm.K.Viswanatha Pillai & ... on 16 August, 2022
T.C.A.Nos.724, 726 and 728 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 16.08.2022
CORAM
THE HON'BLE Mr. JUSTICE R. MAHADEVAN
AND
THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ
T.C.A.Nos.724, 726 and 728 of 2019
AND
C.M.P.Nos.21172 and 21191 of 2019
The Commissioner of Income Tax
Central Circle IV
Chennai .. Appellant in all T.C.A.s
Vs.
M/s.Rm.K.Viswanatha Pillai & Sons
No.176F, Trivandrum Road
Tirunelveli 627 003
PAN : AABFR 1307C .. Respondent in all T.C.A.s
Tax Case Appeals filed under Section 260-A of the Income Tax Act,
1961, against the common order dated 01.06.2016 passed by the Income Tax
Appellate Tribunal 'B' Bench, Chennai, in respective I.T.A.Nos.
1786/Mds/2014, 1784/Mds/2014 and 1881/Mds/2014.
For Appellant Mr.M.Swaminathan
in all T.C.A.s Mrs.V.Pushpa
Standing Counsels
For Respondent Mr.R.Venkatanarayan
in all T.C.A.s for M/s.Subbaraya Aiyar
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T.C.A.Nos.724, 726 and 728 of 2019
COMMON JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
These Tax Case Appeals arise from the common order dated 01.06.2016
passed by the Income Tax Appellate Tribunal 'B' Bench, Chennai, in respective
I.T.A.Nos.1786/Mds/2014, 1784/Mds/2014 and 1881/Mds/2014, relating to the
respective assessment years 2008-09, 2006-07 and 2009-10 by raising the
following substantial questions of law:
T.C.A.No.724 of 2019 :
“(i)Whether on the facts and in the circumstances of the
case and in law, the Hon'ble Income Tax Appellate Tribunal was
legally justified in holding that the deduction of adhoc provision
from the book value of stock to arrive the closing stock is
permissible?
(ii)Whether on the facts and in the circumstances of the
case and in law, the Hon'ble Income Tax Appellate Tribunal was
correct in holding that assessee's method of valuation is
acceptable when the Income Tax Appellate Tribunal itself has
given a finding that such valuation is based on assessee's
perception only not based on any acceptable standard of
accounting?
(iii)Whether on the facts and in the circumstances of the
case and in law, the Hon'ble Income Tax Appellate Tribunal is
right in giving relief on the ground that Assessing Officer failed
to reconcile such stock with the by-numbers given when the
assessee itself failed to do so during the course of search, and
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T.C.A.Nos.724, 726 and 728 of 2019
thus the burden remains undischarged on the assessee who made
the said assertion?”
T.C.A.No.726 of 2019 :
“(i)Whether on the facts and in the circumstances of the
case, u/s.153A the Assessing Officer is not eligible to bring to tax
all the income which was hitherto untaxed besides the income
detected on account of search?
(ii)Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal is correct in holding
that assessment can be done u/s 153A only based on
incriminating material found during the course of search
ignoring the fact that under the new procedure of block
assessment, it is the 'total income' that is to be determined and
not merely the income relating to search?
(iii)Whether on the facts and in the circumstances of the
case, the Income Tax Appellate Tribunal has correctly
interpreted the wordings of Section 153A which are different
from that of Section 158BC?”
T.C.A.No.728 of 2019 :
“Whether on the facts and in the circumstances of the case
and in law, the Hon'ble Income Tax Appellate Tribunal was right
in holding that explanation 1 to Section 32 will not apply for the
repair and renovation expenditure incurred by the assessee on the
leasehold land towards interior decoration, flooring, painting and
temporary partition etc.?”
3. When these matters were taken up for consideration, the learned
counsel for the appellant/Revenue brought to the notice of this court the
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T.C.A.Nos.724, 726 and 728 of 2019
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
these appeals are 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 questions of law for determination in appropriate cases. No
costs. Consequently, connected miscellaneous petitions are closed.
[R.M.D,J.] [M.S.Q, J.]
gya 16.08.2022
To
1.The Commissioner of Income Tax
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T.C.A.Nos.724, 726 and 728 of 2019
Central Circle IV
Chennai
2.The Deputy Commissioner of Income Tax
Central Circle IV(1)
Chennai
3.The Commissioner of Income Tax Appeals (Central)-I
Chennai
4.The Income Tax Appellate Tribunal
'B' Bench
Chennai
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
https://www.mhc.tn.gov.in/judis
T.C.A.Nos.724, 726 and 728 of 2019
gya
T.C.A.Nos.724, 726 and 728 of 2019
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