Madras High Court Dismisses Appeal by Commissioner of Income Tax As There Is No Substantial Question of Law

Madras High Court Dismisses Appeal by Commissioner of Income Tax As There Is No Substantial Question of Law

The Madras High Court dismissed an appeal filed by the Commissioner of Income Tax on grounds that it did not involve any substantial question of law.

The Division Bench of the High Court of Madras, comprising Justices T. S. Sivagnanam and R. N. Manjula, dealt with this matter titled as Commissioner of Income Tax v. Shri Paul Devaraj.

The present tax case appeal was preferred by the Appellant – Commissioner of Income Tax since the Income Tax Appellate Tribunal did not sustain the assessment order of the Assessing Officer for the Respondent – Assessee who was a dealer in turmeric powder. The Court noted that the matter was entirely factual and there was no question of law, much less a substantial question of law.

The calculations made by the Assessing Officer regarding the assessment u/S. 143(3) of the Income Tax Act, 1961, were not sustained by the Appellate Tribunal. The Appellate Tribunal had observed that the estimation of probable sales of turmeric on the basis of the packing material consumed by the assessee was not justified considering that there were two types of packing material. It was further held that there was no material to suggest that the assessee had inflated the purchases or sales.

The Court therefore, observed that all these factual issues were rightfully dealt with by the Tribunal in an elaborate manner by examining the factual position.

The tax case appeal was thus, dismissed as no substantial question of law arose for consideration and it upheld the relief granted to the Respondent – Assessee.