Commissioner Of Income Tax Non-Corporate Circle 13(1), Chennai v. S.mainraj

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 16.08.2018 THE HON'BLE MR.JUSTICE HULUVADI G. RAMESHANDTHE HON'BLE MR.JUSTICE K.KALYANASUNDARAM Tax Case Appeal No.578 of 2018 Commissioner of Income Tax Non-Corporate Circle 13(1),Chennai... AppellantVs. S.Mainraj.. Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, 'D' Bench, Chennai, dated 28.02.2018 in ITANo.2133/MDS/2017. Against the order dated 14/06/2017 made in P.A.No.AGPPM1877obn the fiel of the commissioner of Income Tax(A)-14, Chennai. Against the order of the Assistant Commissioner of IncomeTax, Non-Corporate Circle -13(1), Chennai, dated 31/03/2016 madein AGPPM18773. For Appellant : Mr.S.Premalatha for Mr.M.Swaminathan For Respondent :Ms.V.Pushpa,for Mr.M.Swaminathan This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'D' Bench, Chennai, dated 28.02.2018 inITA No.2133/MDS/2017, by raising the following substantialquestions of law: "(i) Whether the ITAT was right andjustified in concluding that assessee followedcash system of accounting which is contrary to https://hcservices.ecourts.gov.in/hcservices/ the audit report in Form 3CD where the methodfollowed by assessee as mercantile system?(ii) Whether the ITAT erred in holdingthat sum of Rs.58,08,352/- received by theassessee during the previous year is towardsadvance for sale of land even though details ofsale deed numbers and date of execution of saledeed were clearly mentioned in the assessmentorder as per which sum of Rs.2,26,43,128/-represents sale proceeds during the year and notRs.1,68,34,776/- disclosed as per sale proceeds? (iii)Whether Income Tax AppellateTribunal was justified in not adjudicating theground relating to disallowance of developmentexpenses for want of evidence, even though aspecific ground was raised before it? 2. When the matter is taken up for admission, the learnedStanding Counsel for the Appellant brought to our notice theCircular instruction issued by the Central Board of Direct Taxesvide Circular No.3/2018 dated 11.07.2018, wherein it isstipulated that Appeals shall not be filed/pursued by theDepartment before the High Court, in cases where the tax effectdoes not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the Appeal is dismissed asnot pressed, preserving the substantial questions of law fordetermination in an appropriate case. To //True copy// Sub Assistant Registrar 1. The Income Tax Appellate Tribunal,'D'Bench, Chennai.2.The Commissioner of Income Tax(Appeals)-14, Chennai. 3.The Assistant Commissioner of Income TaxNon-Corporate Circle-13(i) chennai. GMY(18/09/2018)