The Commissioner of Income T Vs. M/S Lakshmi Machine work ltd

This case involves an appeal by the Commissioner of Income Tax against M/s. Lakshmi Machine Works Ltd. The appeal, filed under Section 260-A of the Income Tax Act, 1961, concerns the assessment year 2005-06. The Revenue's primary question is whether an assessing officer can examine items beyond specific directions from the Commissioner during reassessment proceedings. The High Court heard arguments from both the Revenue and the assessee.

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 03.11.2020

CORAM

THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM

and

THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN

T.C.A.No.943 of 2019

The Commissioner of Income Tax-II, Coimbatore. .. Appellant

Versus

M/s.Lakshmi Machine Works Ltd., Perianaickenpalayam, Coimbatore – 641 020 (PAN No.AACL5244N) .. Respondent

Prayer:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai dated 23.12.2010 made in I.T.A.No.1632/Mds/2010 relating to the Assessment Year 2005-06.

For Appellant : Mr.T.R.Senthilkumar Senior Standing counsel and Mrs.K.G.Usharani

For Respondent : Mr.R.Vijayaraghavan
For M/s.Subbaraya Aiyar Padmanabhan

JUDGMENT

[Order of the Court was made by T.S.SIVAGNANAM , J.]

This appeal by the Revenue filed under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 23.12.2010 passed by the Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) in I.T.A.No.1632/Mds/2010 for the Assessment Year 2005-06. The Revenue has filed this appeal, raising the following Substantial Question of Law:

“1.Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was right in law in dismissing the revenue's appeal on the ground, the assessing officer can not go beyond the directions of the Commissioner of Income tax, even though during the course of fresh assessment proceedings, it is open to the assessing officer to examine any items other than specific item examine to have the proper income assessed as prospective?”

2. We have heard Mr.T.R.Senthilkumar, learned Senior Standing counsel and Mrs.K.G.Usharani, learned counsel for the appellant / Revenue and Mr.R.Vijayaraghavan, learned counsel for M/s.Subbaraya Aiyar Padmanabhan, learned counsel for the respondent/assessee.

3. We need not labour much to decide the Substantial Question of Law raised by the appellant / Revenue in this appeal on account of the fact that the order, which is impugned before us passed by the Tribunal is as a result an order passed by the Commissioner of Income Tax dated 09.06.2008 under Section 263 of the Act.

To know more in details find the attachment file