Commissioner Of Income Tax Ii, Coimbatore v. Sri A.vadivel

In the High Court of Judicature at MadrasDated : 02.1.2019 Coram :The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal Nos.56 to 59 of 2011 Commissioner of Income Tax II, Coimbatore...Appellant in all the appealsVs Sri A.Vadivel, Proprietor, MinuTextiles ...Respondent in TCA.No.56 of 2011 Sri A.Srinivasan, Proprietor,Srinivas Textiles ...Respondent in TCA.No.57 of 2011 Sri A.Sengottuvel, Proprietor,Anand TextilesSri A.Mariappan, Proprietor,Mariappa Fabrics ...Respondent in TCA.No.58 of 2011 ...Respondent in TCA.No.59 of 2011 APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 16.7.2010 respectively in ITANos.1573 to 1576/Mds/ 2007 on the file of the Income TaxAppellate Tribunal Madras 'A' Bench for the assessment year2000-01. TCA.No.56/2011 Appeal against the order of The Commissioner of Income Tax(Appeals),Coimbatore in PAN No. in Appeal No.45/06-07dated 1.2.07 for the Assessment year 2000-2001 against theAssessment order in PA/GIR No. 1CPV0008 dated 10.03.2006 for theAssessment year 2000-2001. TCA.No.57/2001 Appeal against the order of The Commissioner of Income Tax(Appeals), Coimbatore in PAN No. in Appeal No. 46/06-07 dated 1.02.07 for the Assessment year 2000-01 against TheAssessment order in PA/GIR No.1CPS0049 dated 10.03.2006 for theAssessment year 2000-2001., https://hcservices.ecourts.gov.in/hcservices/ TCA.NO.58/2011 Appeal against the order of the Commissioner Income Tax(Appeals), Coimbatore in PAN No. AIXPS33018F in Appeal No.43/06-07 dated 1.2.07 for the Assessment year 2000-2001 againstthe Assessment order in PA No./GIR No.1CPS0038 dated 10.03.2006for the Assessment year 2000-2001. TCA.NO.59/2011 Appeal against the order of the Commissioner Income Tax(Appeals), Coimbatore in PAN No. in Appeal No. 44/06-07 dated 1.2.07 for the Assessment year 2000-2001 against theAssessment order in PA No./GIR No.1CPM0012 dated 10.03.2006 forthe Assessment year 2000-2001. For Appellant : Mr.T.R.Senthilkumar, SSC &Ms.K.G.Usharani, JSCFor Respondents : Mr.S.Sridhar COMMON JUDGMENT(Judgment was delivered by T.S.SIVAGNANAM,J) Heard the learned Standing Counsel for the appellant. 2. These appeals by the Revenue challenge the common orderpassed by the Income Tax Appellate Tribunal, which decided theissue in favour of the assessees. The appeals were admitted on25.2.2011 on the following substantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law todelete the addition on account of capitalgains made by the Assessing Officer andupheld by the Commissioner of Income Tax(Appeals) under Section 45(6) read withSection 80CCB(2) of the Act is valid ? Andii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law indeleting the addition made by the AssessingOfficer even though gains resulting fromswitch over from one scheme of mutual fundto another scheme is eligible for capitalgains?” 3. The Revenue seeks to withdraw these appeals on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, these appeals are dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event, in any of the cases, the tax effect is abovethe threshold limit fixed in the said circular under exceptionalclauses mentioned in the circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. 3. The Revenue seeks to withdraw these appeals on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, these appeals are dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event, in any of the cases, the tax effect is abovethe threshold limit fixed in the said circular under exceptionalclauses mentioned in the circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant RegistrarTo1.The Income Tax Appellate Tribunal, Madras 'A' Bench.2.The Commissioner of Income Tax Appeal-I. Coimbatore.3.The Deputy Commissioner of Income Tax Circle I, Erode.+1cc to Mr.T.R.Senthikumar, Advocate, S.R.No.219+1cc to Mr.S.Sridhar, Advocate, S.R.No. 369TCA.Nos.56 to 59 of 2011KS(CO)rrs 12/3/2019