Commissioner Of Income Taxchennai v. M/S.blue Lagoon Motels &Properties Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12.4.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIAND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN Commissioner of Income TaxChennai ...Appellant..Vs.. M/s.Blue Lagoon Motels &Properties Pvt. Ltd.,40, Gandhimandapam Road,Chennai 600 085. ...Respondent Tax Case filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,Madras 'A' Bench, Chennai, dated 18.10.2007 made in ITANo.2799/Mds/2005 as against the order dated 09/09/06 of theCommissionerofIncomeTax(Appeals)inorderNo.ITA.No.183/2005-2006/A-III as against the order dated24/03/05 of the Asst. Commissioner of Income Tax, Chennai inPAN/GIR NO.AAACB 2664A for the Assessment Year 2002-03. For Respondent : Mr.A.S.Sivaraman for Mr.S.Sridhar (Delivered by DR.VINEET KOTHARI,J) This Tax Case has been filed by the Revenue calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'A' Bench, Chennai, dated 18.10.2007 made inITA No.2799/Mds/2005, by raising the following substantialquestions of law: "i) Whether, in the facts and circumstances of the casethe Tribunal was right in holding that the sale proceedsof the land at Sholinganallur and Thirupathy are not https://hcservices.ecourts.gov.in/hcservices/ assessable as business income when the land was soldafter dividing them into plots?ii) Whether, in the facts and circumstances of the case,the Tribunal was right in holding that the sale proceedsof the land cannot be subjected to long term capitalgains tax? iii) Whether, in the facts and circumstances of thecase, the Tribunal was right in not considering theground raised by the Revenue to the effect that theassessee had adduced an additional evidence in the formof VAO Certificate before the CIT(A) and the assessingofficer must have given an opportunity in this regard? iv) Whether, in the facts and circumstances of the case,the Tribunal was right in treating the amounts advancedby the assessee in the form of finance transactionwhich were claimed as not realizable and written off inthe books as allowable bad debts when the assessee isnot in the business of financing? v) Whether, in the facts and circumstances of the case,the Tribunal was right in holding that the assessee iseligible for the deduction of interest paid towards loanfor purchase of cards when it is not the case beforethe assessing officer and the assessee had taken suchplea before the CIT(A) for the first time? vi) Whether, in the facts and circumstances of the case,the Tribunal was right in holding that the assessingofficer had considered the letter of the assesseewherein it was stated that the long term capital gainsreported in its return may be treated as Nil?" 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 Tax Casefiled by the Revenue is dismissed as not pressed, keeping openthe substantial questions of law for determination in anappropriate case. ssk. Sd/-Assistant Registrar //True Copy// Sub Assistant Registrar To 1. The Commissioner of Income Tax Chennai Chennai 2. The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai Madras 'A' Bench, Chennai 3. The Deputy Commissioner of Income Tax, Company Circle - I(2), Chennai. Income Tax, Company Circle - I(2), Chennai. 4. The Assistant Commissioner of Income Tax, (Company Circle-I(2), Chennai - 34. +1cc to Mr.S.Sridhar, Advocate, SR.No.36178+1cc to Mr.T.Ravikumar, Advocate, SR.No.36130 Kak(05/07/2019) Sd/-Assistant Registrar //True Copy// Sub Assistant Registrar To 1. The Commissioner of Income Tax Chennai Chennai 2. The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai Madras 'A' Bench, Chennai 3. The Deputy Commissioner of Income Tax, Company Circle - I(2), Chennai. Income Tax, Company Circle - I(2), Chennai. 4. The Assistant Commissioner of Income Tax, (Company Circle-I(2), Chennai - 34. +1cc to Mr.S.Sridhar, Advocate, SR.No.36178+1cc to Mr.T.Ravikumar, Advocate, SR.No.36130 Kak(05/07/2019) TC No.650 of 2008