Commissioner Of Income Tax,Chennai v. M/S.egberts India Pvt. Ltd.,F97, Anna Nagar East,Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 02.08.2018 Coram THE HONOURABLE MR. JUSTICE M.M.SUNDRESHandTHE HONOURABLE MR. JUSTICE N.ANAND VENKATESH Commissioner of Income Tax,Chennai... Appellant/Appellant vs. M/s.Egberts India Pvt. Ltd.,F97, Anna Nagar East,Chennai... Respondent/Respondent Appeal filed under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal "B"Bench, Chennai dated 16.09.2009 passed in I.T. A. 2136/Mds/2008against the order of the Commissioner of Income Tax(Appeals)II,Chennai dated 23.07.2008 and made in ITR No. 557/2007-2008/A-IIIand against the order of the Assistant Commissioner of IncomeTax Company -II(1), Chennai 34 dated 28.12.2007 and made inPAN/GIR-AAACE 1410F. For Appellant:Mr.T.Ravikumar For Respondent :Mr.M.P.SenthilkumarJUDGMENT(Judgment of the Court was delivered by M.M.SUNDRESH, J.) The Revenue has filed this appeal by formulating thefollowing substantial questions of law in respect of theassessment year 2001-2002: "1.Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that the profit on the sale of theland which is a capital receipt which was notreflected in the P&L statement in violation of Clause2(b) of Schedule VI, Part I of the Companies Act andcredited in the capital reserve, need not be added tothe book profits for the purpose of the assessmentunder Section 115JB? https://hcservices.ecourts.gov.in/hcservices/ 2.Without prejudice to the preceding question,whether on the facts and in the circumstances of thecase, the Income Tax Appellate Tribunal was right inoverlooking the provisions of Clause (b) ofExplanation 1 to Section 115JB as per which theAssessing Officer was right in adding back the amountof profit on sale of land carried to capital reservein arriving at the "book profit"? 2.Heard the learned counsel appearing for the appellant andthe learned counsel appearing for the respondent. 3.When the matter is taken up for hearing, learned counselappearing for the appellant would submit that the Central BoardDirect Taxes by Circular No.3/2018 dated 11.07.2018 revised themonetary limits for filing appeals before the Appellate Tribunaland the High Court and for filing special leave petitions beforethe Supreme Court. As per the said circular, the monetary limitfor filing appeal before the High Court has been increased toRs.50,00,000/-. 4.In view of the circular issued by the Central BoardDirect Taxes in Circular No.3/2018 dated 11.07.2018, this taxcase appeal is dismissed on the ground of low tax effect,leaving the substantial questions of law open, which have beenframed for consideration. No costs. s/d- Assistant Registrar(CS V) Sub-Assistant Registrar mmiTo1.The Income Tax Appellate Tribunal,"B" Bench, Chennai. 2. The Commissioner of Income Tax Appeals(III) Chennai. 3. The Assistant Commissioner of Income Tax Company II(1) Chennai 34. +1 CC to Mr.M.P. Senthil Kumar, Advocate sr 53041 KK(CO)SP(31/08/2018)