Commissioner Of Income Tax v. M/S. Indus Valley Housing A

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 07.02.2019 THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN Tax Case Appeal No. 135 of 2017 Commissioner of Income TaxNo.121, Mahatma Gandhi RoadNungambakkam,Chennai. ..Appellant /RespondentVs.M/s. Indus Valley HousingA-68, Anna Nagar East,Chennai – 600 102.PAN: AAC FI 2508 P ..Respondent/Appellant----- Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 22.04.2016 made inITA No.611/Mds/2014 against the order of the Commissioner ofIncome Tax(Appeals) VII dated 21.01.2014 made in ITA No. 948/13-14 for the Assessment Year 2010-11. For Respondent : Mr.R.Sivaraman (Delivered by DR.VINEET KOTHARI, J.) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, by raising the following substantialquestions of law: "Whether default in payment of tax or interestcould be presumed to be for good and sufficientreason and penalty under Section 221(1) of the Actdeleted by the Tribunal, when the assessee was found https://hcservices.ecourts.gov.in/hcservices/ to have spent a huge amount in businessdiversification and/or expansion and thus short offunds to pay taxes and interest on taxes?". 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. Sd/- Assistant Registrar vsg //True Copy// Sub Assistant Registrar 1.The Commissioner of Income Tax (Appeal)-VII O/o. The Commissioner of Income Tax (Appeals)-VII 121, Mahatma Gandhi Road, Chennai-34. 2.The Assistant Registrar, Income Tax Appellate Tribunal, 'D' Bench, Chennai.Tax Case Appeal No. 135 of 2017rrs 26/03/2019