Principal Commissioner of Income-tax 3, Coimbatore v. Venkatalakshmi Textiles Pvt. Ltd
[Citation -2020-LL-0925-94]

Citation 2020-LL-0925-94
Appellant Name Principal Commissioner of Income-tax 3, Coimbatore
Respondent Name Venkatalakshmi Textiles Pvt. Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 25/09/2020
Assessment Year 2006-07
Judgment View Judgment
Keyword Tags reopening of assessment • change of opinion • monetary limit • tax effect • full and true disclosure


Judgt. dt. 25.9.2020 in T.C.A.562 & 563/2017 PCIT 3 V. Venkatalakshmi Textiles Pvt. Ltd. 1/5 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.9.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE KRISHNAN RAMASAMY Tax Case (Appeal) Nos.562 and 563 of 2017 Principal Commissioner of Income Tax 3, No.63, Race Course Road, Coimbatore. Appellant Vs. M/s.Venkatalakshmi Textiles Pvt. Ltd., 335, Mangalam Road, Tirupur 641604. PAN: AAACV7208A Respondent Tax Case Appeals filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 9.11.2016 made in ITA No.1467/Mds/2016 and C.O.No.113/Mds/2016. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Ms.Indumathi for Mr.J.Balachander COMMON JUDGMENT (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 Tribunal, 'B' Bench, Chennai, dated 9.11.2016 made in ITA http://www.judis.nic.in Judgt. dt. 25.9.2020 in T.C.A.562 & 563/2017 PCIT 3 V. Venkatalakshmi Textiles Pvt. Ltd. 2/5 No.1467/Mds/2016 and C.O.No.113/Mds/2016, for Assessment Year 2006-2007, by raising following substantial questions of law: "(i) Whether on facts and in circumstances of case, Tribunal is Justified in law in holding that reopening of assessment was bad in law when assessee had failed to disclose fully and truly all material facts necessary for assessment in Return of income filed by it? (ii) Whether on facts and in circumstances of case, Tribunal is Justified in law in holding that reopening of assessment was bad in law when A.O had reason to believe that income had escaped assessment? (iii) Whether on facts and in circumstances of case, Tribunal is justified in law in holding that there was change of opinion by A.O., when A.O. reopened assessment to give effect to new finding which was not available to A.O at time of completion of original assessment? (iv) Whether on facts and in circumstances of case, Tribunal is justified in law in allowing http://www.judis.nic.in Judgt. dt. 25.9.2020 in T.C.A.562 & 563/2017 PCIT 3 V. Venkatalakshmi Textiles Pvt. Ltd. 3/5 Cross Objection filed by assessee upholding that reopening of assessment is bad in law?" 2. When matters are taken up for hearing, learned Senior 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 withdrawn, keeping open substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (K.R.,J.) 25.9.2020 Index : Yes/No Internet : Yes/No ssk. http://www.judis.nic.in Judgt. dt. 25.9.2020 in T.C.A.562 & 563/2017 PCIT 3 V. Venkatalakshmi Textiles Pvt. Ltd. 4/5 To 1. Income Tax Appellate Tribunal, 'B' Bench, Chennai. 2. Deputy Commissioner of Income Tax, Circle-1, Tirupur. 3. M/s.Venkatalakshmi Textiles Pvt. Ltd., 335, Mangalam Road, Tirupur 641 604. http://www.judis.nic.in Judgt. dt. 25.9.2020 in T.C.A.562 & 563/2017 PCIT 3 V. Venkatalakshmi Textiles Pvt. Ltd. 5/5 DR.VINEET KOTHARI, J. and KRISHNAN RAMASAMY, J. ssk. T.C.(A) Nos.562 & 563/2017 25.9.2020. http://www.judis.nic.in Principal Commissioner of Income-tax 3, Coimbatore v. Venkatalakshmi Textiles Pvt. Ltd
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