Principal Commissioner Of Income Tax-3 vs Sunsmart Technologies Pvt Ltd
2024 Latest Caselaw 19790 Mad

Madras High Court

Principal Commissioner Of Income Tax-3 vs Sunsmart Technologies Pvt Ltd on 21 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                    T.C.A.No.174 of 2024

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 21.10.2024

                                                        CORAM

                                    THE HON'BLE MR.JUSTICE R.SURESH KUMAR
                                                     AND
                                     THE HON'BLE MR.JUSTICE C.SARAVANAN

                                           Tax Case Appeal No.174 of 2024


                   Principal Commissioner of Income Tax-3
                   Corporate Ward 6(1), 121, Nungambakkam
                   High Road, Chennai 600 034.                            ....     Appellant

                                                           Vs.

                   Sunsmart Technologies Pvt Ltd
                   25, Yellow Buildings, 25, RK Salai
                   V Floor, Opp.HSBC Bank, Mylapore
                   Chennai 600 004
                   PAN : AAJCS7454C                                       ....     Respondent
                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, 'A' Bench Chennai,
                   dated 31.10.2023 made in I.T.A.No.173/Chny/2023.
                                   For Appellant       : Mr.J.Narayanaswamy
                                                         Senior Standing Counsel

                                                    JUDGMENT

(Delivered by R.SURESH KUMAR, J.)

This Tax Case Appeal has been filed by the Revenue calling in question

the correctness of the order passed by the Income Tax Appellate Tribunal,

Chennai by raising the following substantial questions of law:

https://www.mhc.tn.gov.in/judis

1. Whether on the facts and in the circumstances of the case and in law, the ITAT was right in law in quashing the revision order u/s.263 of the Income Tax Act without regard to the set judicial precedents of the Hon'ble Supreme Court and Delhi High Court?

2. Whether on the facts and circumstances of the case and in law, the ITAT has erred in quashing the revision order U/s.263 when the PCIT after verification of the records found that no verification / enquiry was made by the AO about the claim of expenses of Rs.2,13,11,528/- paid to M/s.SSG Technologies LLC, Dubai as per the agreement and therefore the said assessment order is covered by clause(a) to Explanation 2 to Section 263 making it an order deemed to be erroneous and prejudicial to the interests of the revenue?

3. Whether the ITAT was right in law in quashing the revision order u/s.263 which is a power by way of remedial action in-built into the Act, to arrest leakage of revenue based on Revenue Audit Objection?

2. By the impugned order passed under Section 263 of the Income Tax

Act by the Revisional Authority, the matter has been remanded originally to the

assessing authority, where the proposed tax, even if it is imposed, would be

https://www.mhc.tn.gov.in/judis

less than the tax effect as per the CBDT's Circular No.9 of 2024 dated

17.09.2024.

3. Therefore, this Tax Case Appeal is dismissed for low tax effect,

keeping open the substantial questions of law for adjudication at appropriate

stage. No costs.

                                                                   (R.S.K.,J.)    (C.S.N.,J.)
                                                                         21.10.2024
                   NCS : Yes/No
                   KST

                   To

The Income Tax Appellate Tribunal 'A' Bench, Chennai.

https://www.mhc.tn.gov.in/judis

R.SURESH KUMAR, J.

AND C.SARAVANAN, J.

KST

21.10.2024

https://www.mhc.tn.gov.in/judis