Chennai v. M/S.mount Mettur Pharmaceuticals Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 19.09.2019 CORAM : THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal Nos.422 to 425 of 2010 The Commissioner of Income Tax,Chennai. Chennai....Appellant inall appealsVs.M/s.Mount Mettur Pharmaceuticals Ltd.,32, 9[th] Street, Dr.Radhakrishnan Salai,Chennai-600 004....Respondent inall appeals Tax Case Appeals filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, 'B' Bench, Chennai, dated 28.03.2008 made in ITANo.340/Mds/02; ITA No.850/Mds/2001; ITA No.886/Mds/2001 and ITANo.503/Mds/02 against the order dated 25.01.2002 and 20.02.2001and made in I.T.A. Nos. 263/2001-2002 and 122/2000-2001 on thefile of the Commissioner of Income Tax (appeals)V, and theCommissioner of Income Tax (Appeals-IX) Chennai and against theorder dated 28.03.2001 and 31.03.2000 and made in PAN/GIR No. /27-M and PAN/GIR.No. 27-M on the file of the JointCommissioner of Income Tax, Special Range II, Chennai 34respectively COMMON JUDGMENT (Delivered by DR.VINEET KOTHARI,J.) These Tax Case Appeals have been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'B' Bench, Chennai, by raisingthe following substantial questions of law: https://hcservices.ecourts.gov.in/hcservices/ "1.Whether in the facts and circumstances ofthe case, the Tribunal was right in holding thatthe action of the assessee to enter into agreementto develop/sell the land in not a business activityto earn business profits? 2.Whether in the facts and circumstances ofthe case, the Tribunal was right in holding thatthe transfer of the land of the assessee had takenplace as per the Section 2(47) of the Income-taxAct for the purpose of computation of the capitalgains? 3.If the answer to the above is inaffirmative, whether the Tribunal was right inholding that the assessee is hit by the provisionsof Section 54G(2) and is eligible for the exemptionof the capital gains that was not appropriatedtowards purpose mentioned in clause a to d ofSection 54G(1)? And 4.Whether the Tribunal was right in holdingthat exempted capital gain under Section 54F had tobe excluded from the book profits u/s.115JA?” 2. When these matters are taken up for hearing, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 08.08.2019 wherein it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceed Rs.1Crore. 3. In these cases, the tax effect are said to be less thanthe monetary limit imposed and therefore, the appeals filed bythe Revenue are dismissed as not pressed, keeping open thesubstantial questions of law for determination in an appropriatecases. True Copy bbrTo: Sub-Assistant Registrar 1. The Registrar, Income Tax Appellate Tribunal, Madras "B" Bench, Chennai. 2. The Commissioner of Income Tax (Appeals)-V, 121, Mahatma Gandhi Road, Chennai-34. 121, Mahatma Gandhi Road, Chennai-34. 3. The Joint Commissioner of Income-tax, Special Range II, Chennai-34. 4.The Commissioner of Income TaxChennai.Chennai. T.C.(A) Nos.422 to 425 of 2010VD(CO)SP(30/10/2019)