Commissioner Of Income Tax Circle I Erode v. Skm Shree Shivkumar

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (A) No.45 of 2015 Commissioner of Income TaxCircle I Erode. ..Appellant /RespondentVs. SKM Shree Shivkumar41, Periyar Nagar, Erode.PAN: ..Respondent/Appellant Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, 'B' Bench, Chennai, dated 17.7.2014 made in ITANo.1965/Mds/2011. Arising from the order of Commissioner of Income Tax (A)I, Coimbatore dt.31.10.2011 in Appeal No.175/10-11, againstthe Assessment order dt.30.12.2010 of the AssistantCommissioner of Income Tax, Circle I, Erode, PAN. . For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Mr.M.P.Senthilkumar J U D G M E N T(Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, 'B' Bench, Chennai, dated17.7.2014 made in ITA No.1965/Mds/2011, for the AssessmentYear 2008-2009, by raising the following substantial questionsof law: "(i) Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that the provisions of https://hcservices.ecourts.gov.in/hcservices/ Sections 2(22)(e), 2(24)(iv) or 56(2)(vi) cannotbe invoked in the assessee case? (ii) Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that M/s.SKM Animal Feeds andFood (India) Limited could be made as a party to afamily arrangement between the family members,when the company is a separate legal entity havinga distinct existence, independent of its directorswho are the family members? (iii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatalienation of the assets of the private companyM/s.SKM Animal Feeds and Foods (India) Limited toone of its directors will not amount to transferin pursuant of the family arrangement? (iv) Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that corporate veil of thecompany M/s.SKM Animal Feeds and Foods (India)Limited was required to be lifted to see theentire transaction as family settlement arrivedthrough the arbitration award?" 2.When the matter is taken up for hearing, learned SeniorStanding Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxesvide Circular No.17/2019 dated 8th August 2019, wherein,it is stipulated that appeals shall not be filed/pursuedby the Department before the High Court in cases wherethe tax effect does not exceed Rs.1,00,00,000/- (RupeesOne Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appealfiled by the Revenue is dismissed, as withdrawn, keeping openthe substantial questions of law for determination inappropriate cases. No costs. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar To 1. The Registrar, Income Tax Appellate Tribunal, 'B' Bench, Chennai. 'B' Bench, Chennai. 2. The Commissioner of Income Tax (A) I, Coimbatore. Coimbatore. 3. The Commissioner of Income Tax Circle I, Erode. Circle I, Erode. Rsk(co)krd 17/7 Tax Case (A) No.45 of 2015