Commissioner Of Income Tax Trichy Ii, Trichy v. Shri K.sampath

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.01.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case (Appeal) Nos.1331 to 1333 of 2009 Commissioner of Income Tax Trichy II, Trichy. (A)s .... Appellant in the above T.C. Vs. Shri K.Sampath .... Respondent in the above T.C.(A)s Tax Case Appeals filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'D' Bench, Chennai, dated 17.10.2008 made in IT(SS)A.Nos.1, 2 and 9/Mds/2008 for the block Assessment period1990-91 to 2000-01 and against the order of the Commissioner ofINcome Tax (Appeals) Tiruchirapalli, dated 11.10.2007 made in ITANo.498/06-07, ITA No.185/01-02, and the Assistant Commissionerof Income Tax Company Circle-I, Tiruchirapalli dated 29.12.2008,made in PAN/GIR No. , and against the order of theAssistant Commissioner of Income Tax Company Circle - I,Tiruchirapalli, dated 31.10.2001 made in PAN/GIR.No.168-S/INS-II,/TRY. For Appellant : Mr.M.Swaminathan Sr.Standing Counsel assisted by Ms.Premalatha For Respondent : Mr.A.S.Sriraman for Mr.S.Sridhar This Tax Case Appeals have been filed by the Revenuecalling in question the correctness of the order passed by the https://hcservices.ecourts.gov.in/hcservices/ Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated17.10.2008 made in IT(SS)A.Nos.1, 2 and 9/Mds/2008 for the blockAssessment period 1990-91 to 2000-01. 2. The above appeals have been admitted on 07.12.2009 onthe following substantial question of law :"Whether in the facts and in the circumstancesof the case, the Appellate Tribunal was right inholding that income by way of business profits outof development and sale of land and disallowance ofcommission have to be examined only in the hands ofthe firm M/s.Southern Construction Enterprises andnot in the hands of the assessee disregarding allrelevant evidence and relying on irrelevantmaterial?” 3. When the matters are 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. 4. In the instant cases, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeals filedby the Revenue are dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. No costs. sl Sd/- Assistant Registrar(CS V) //True Copy// Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai. Madras 'D' Bench, Chennai. 2. The Commissioner of Income Tax (Appeals), Tiruchirapalli. Tiruchirapalli. 3. The Assistant Commissioner of Income Tax, Company Circle I, Tiruchirapalli. Income Tax, Company Circle I, Tiruchirapalli. 4. The Commissioner of Income Tax-II, Trichy. Trichy. +1cc to M/s.S.Premalatha, Advocate, S.R.No.5862 +1cc to Mr.S.Sridhar, Advocate, S.R.No.6890 Tax Case (Appeal) Nos.1331 to1333 of 2009 BR(CO)kak(11/03/2019)