Commissioner Of Income Taxkumbakonam v. Kumbakonam Mutual Benefit Fund Ltd.,Tsr Big St., Kumbakonam

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 18.12.2018 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.505 of 2009 Commissioner of Income TaxKumbakonam..... Appellant Vs. Kumbakonam Mutual Benefit Fund Ltd.,TSR Big St., Kumbakonam. .... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'C' Bench, Chennai, dated 30.10.2008 made inITA No.661/Mds/2007 for the assessment year 2003-04. Against the order of the Commissioner of Income Tax(Appeals), Tiruchirappalli, dated 14.11.2006 made inI.T.A.No.113/CIT(A)/TRY/2006-2007 against the Assessment orderof the Assistant Commissioner of Income Tax, Circle-I,Kumbakonam dated 31.03.2006 made in G.I.No.8020-T/AADFT0308D forthe Assessment year 2003-04. For Appellant : Mr.M.Swaminathan Sr.Standing Counsel For Respondent : Mr.Venkat Narayanan for M/s.Subbaraya Aiyar PadmanabhanJ U D G M E N T(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, Madras ''C' Bench, Chennai, dated30.10.2008 made in ITA No.661/Mds/2007 for the assessment year2003-04 by raising the following substantial question of law: https://hcservices.ecourts.gov.in/hcservices/ "Whether on the facts and in the circumstancesof the case the Tribunal was right in holding that asum of Rs.73.38 lacs had to allowed as deduction onthe ground that the said interest income was notreceived and tax cannot be levied on hypothecalincome, even though the assessee was followingaccrual system of accounting?" 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(CS III) //True Copy// Sub Assistant Registrar sl To 1. The Income Tax Appellate Tribunal, Madras 'C' Bench,Chennai. 2. The Commissioner of Income Tax (Appeals),Tiruchirappalli. 3. The Assistant Commissioner of Income Tax, Circle-I,Kumbakonam. +1 cc to Mr.M.Swaminathan, Advocate Sr.No.88075 +1 cc to M/s.Subbaraya Aiyar Padmanabhan, Advocate Sr.No.88236 CSL/21.01.2019 TCA No.505 of 2009