Order in TCA Nos.329 & 330 of 2012 (CIT -Vs- M/s.Sree Annapoorna Gowrishankar Estates & Constructions Pvt Ltd) dated 04.06.2020 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.06.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) Nos.329 & 330 of 2012 Commissioner of Income Coimbatore. Appellant in both appeals Vs. M/s.Nova Dyeing Printing Mills Ltd 41, KKR Avenue, Perambur Chennai. .. Respondent in both appeals Tax Case Appeals filed under Section 260A of Income Tax Act, 1961 against common order of Income Tax Appellate Tribunal 'B' Bench, Chennai dated 16.03.2012 in ITA Nos.1721 & 1776/Mds/2011. For Appellant : Mr.T.R.Senthil Kumar, Sr.Standing Counsel assisted by Ms.K.G.Usha Rani For Respondent : Mr.R.Sivaraman JUDGMENT (Judgment of Court was delivered by DR.VINEET KOTHARI,J) These Tax Case Appeals have been filed by Revenue calling in question correctness of order passed by Income Tax Appellate Page 1 of 5 http://www.judis.nic.in Order in TCA Nos.329 & 330 of 2012 (CIT -Vs- M/s.Sree Annapoorna Gowrishankar Estates & Constructions Pvt Ltd) dated 04.06.2020 Tribunal, 'B' Bench, Chennai, by raising following substantial questions of law: T.C.A.No.329 of 2012 a. Whether on facts and circumstances of case, Income Tax Appellate Tribunal was correct in deleting addition made by appellant under Section 69B of Income Tax which were sustained by Commissioner of Income Tax (Appeals)? b. Whether under facts and circumstances of case, Income Tax Appellate Tribunal was correct in holding that no reference could be made to Valuation Officer without rejecting assessee's books of accounts? c. Whether under facts and circumstances of case, Income Tax Appellate Tribunal was correct in holding that case of appellant is covered by decision of Supreme Court in case of Sargam Cinema Vs. CIT reported in 328 ITR 513 though Section 142A of Income Tax Act, 1961 was inserted by Finance Act 2004, with retrospective effect from 15th November 1972, empowering Assessing Officer to seek Valuation Report from Valuation Officer for purpose of making assessment or reassessment? d. Whether under facts and circumstances of case, Income Tax Appellate Tribunal was correct in holding that using report of Valuation Officer in reassessment without rejecting assessee's books of accounts is impermissible and consequently addition should be deleted?" Page 2 of 5 http://www.judis.nic.in Order in TCA Nos.329 & 330 of 2012 (CIT -Vs- M/s.Sree Annapoorna Gowrishankar Estates & Constructions Pvt Ltd) dated 04.06.2020 T.C.A.No.330 of 2012": a. Whether on facts and circumstances of case, Income Tax Appellate Tribunal was correct in holding that addition made by Assessing Officer towards supplementary additional works is rightly deleted by Commissioner of Income Tax (Appeals)? b. Whether under facts and circumstances of case, Income Tax Appellate Tribunal was correct in holding that case of appellant is covered by decision of Supreme Court in case of Sargam Cinema Vs. CIT reported in 328 ITR 513 though Section 142A of Income Tax Act, 1961 was inserted by Finance Act 2004, with retrospective effect from 15th November 1972, empowering Assessing Officer to seek Valuation Report from Valuation Officer for purpose of making assessment or reassessment? d. Whether though Section 142A of Income Tax Act, 1961 was inserted by Finance Act 2004, with retrospective effect from 15th November 1972, empowering Assessing Officer to seek valuation report from Valuation Officer for purpose of making assessment or reassessment? d. Whether under facts and circumstances of case, Income Tax Appellate Tribunal was correct in holding that using report of Valuation Officer in reassessment without rejecting assessee's books of accounts is impermissible and consequently addition should be deleted?" Page 3 of 5 http://www.judis.nic.in Order in TCA Nos.329 & 330 of 2012 (CIT -Vs- M/s.Sree Annapoorna Gowrishankar Estates & Constructions Pvt Ltd) dated 04.06.2020 2. When matter was taken up for hearing, learned Standing Counsel brought to our notice Circular instruction issued by 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 Department before High Court in cases where tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In instant cases, tax effect is said to be less than monetary limit imposed and therefore, appeals filed by Revenue are dismissed as not pressed, keeping open substantial questions of law for determination in appropriate case. (V.K.,J.) (R.S.K.,J.) 04.06.2020 KST To Income Tax Appellate Tribunal 'B' Bench,Chennai. Page 4 of 5 http://www.judis.nic.in Order in TCA Nos.329 & 330 of 2012 (CIT -Vs- M/s.Sree Annapoorna Gowrishankar Estates & Constructions Pvt Ltd) dated 04.06.2020 DR.VINEET KOTHARI, J. AND R.SURESH KUMAR, J. KST T.C.(A) Nos.329 & 330 of 2012 04.06.2020 Page 5 of 5 http://www.judis.nic.in Commissioner of Income, Coimbatore v. Nova Dyeing Printing Mills Ltd