Principal Commissioner of Income-tax 2, Chennai v. H.M.Brothers Ltd
[Citation -2020-LL-0721-1]
Citation | 2020-LL-0721-1 |
---|---|
Appellant Name | Principal Commissioner of Income-tax 2, Chennai |
Respondent Name | H.M.Brothers Ltd. |
Court | HIGH COURT OF MADRAS |
Relevant Act | Income-tax |
Date of Order | 21/07/2020 |
Judgment | View Judgment |
Keyword Tags | original assessment order • reassessment proceedings • concealment of income • depreciation claim • monetary limit • satisfaction • tax effect • penalty |
Bot Summary: | For appellant : Mr.Karthik Ranganathan, Senior Standing Counsel For respondent : No appearance JUDGMENT The Court was held by Video Conference, as per the Resolution of the Full Court dated 3 July 2020, by Judges at their respective residence and the counsel, staff of the Court appearing from their respective residences. 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, Income Tax Appellate Tribunal, Madras D Bench, in ITA No.331/Mds/2014, dated 29.04.2016, by raising the following substantial questions of law: 1. Whether on the facts and circumstances of the case and in law, the Tribunal was correct and justified in cancelling the penalty levied u/ s 271(I)(c) 2. Whether on the facts and circumstances of the case and in law, the Tribunal was right and justified in holding that AO exceeded his jurisdiction in initiating the penalty proceedings u/s 271(1)(c) when the original assessment order was set-aside by CIT(A) and in the consequential order passes u/s 143(3) r.w.s 250, the AO rightly initiated the penalty on satisfaction of concealment of income during such proceedings 3. Whether on the facts and circumstances of the case and in law, the Tribunal was right and justified in deleting the penalty levied on bogus depreciation claim when assessee failed to substantiate the claim by producing at least the invoice evidencing purchase of such asset 2. When the matter was taken up for hearing, the learned 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/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. |