Commissioner Of Income Tax,Salary Ward Ii (2),Chennai v. Mrs.mary Johnold

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 22.11.2019 THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.270 of 2018 Commissioner of Income Tax,Salary Ward II (2),Chennai.... Appellant Vs Mrs.Mary JohnOld No.92-B, New No.15,1st floor, A1 Block, 9th Main Road,Anna Nagar, Chennai 600 040.PAN: ABRPM 1156 H ...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income TaxAct, 1961 against the order dated 31.10.2017 inI.T.A.No.2089/Mds/2014 on the file of the Income Tax AppellateTribunal Chennai 'C' Bench for the assessment year 2008-09against the order dated 28/04/2014 in ITA.NO.35/2013-14 on thefile of the Commissioner of Income Tax(Appeals)-II, 121, MahatmaGandhi Road, Nungambakkam, Chennai-34 against the order dated13/03/2013 vide PAN.NO. on the file of the Income TaxOfficer, Salary Ward-II(2), Chennai-34. For Appellant : Mrs.V.Pushpa For Respondent : Mr.Anand Sashidharan This tax case appeal has been filed against the order ofthe Income Tax Appellate Tribunaldated 31.10.2017 inI.T.A.No.2089/Mds/2014 in allowing the appeal filed by theassessee against the order of the Commissioner of Income Tax(Appeals) by which the appeal filed by the assessee wasdismissed. 1/3 https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mrs.V.Pushpa, learned Counsel for the appellant.3.This tax case appeal is admitted on the followingsubstantial questions of law: "(i)Whether the Income Tax Appellate Tribunal wasright in holding that the failure to deposit theunutilized capital gain in a bank account in accordancewith the capital gain account scheme is a procedurallapse and that the provisions of Section 54 (2) of theIncome Tax 1961 are not violated? (ii)Whether the Income Tax Appellate Tribunal wasright in not following the provisions of Section 54 92)of the Income Tax Act 1961 which mandates that theunutilized capital gain must be deposited in a bankaccount in accordance with the capital gain accountscheme before the due date for furnishing the return ofincome u/s 139 (1) of the Income Tax Act 1961, inspiteof the fact that no such deposit was made by theassessee?" 4.Mrs.V.Pushpa, learned Counsel appearing on behalf of theappellant would submit that the tax effect in this case is lessthan Rs.1 crore and is covered by Circular No.17/2019 dated08.08.2019 issued by the Director, Central Board of DirectTaxes, Department of Revenue, Ministry of Finance, Government ofIndia, Delhi. As per the said circular, the monetary limit tofile an appeal before the High Court is fixed at Rs.1 crore. Inthis case, tax effect is less than Rs.1 crore and therefore, theappeal has to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the Circular, which prescribes monetary limitfor filing appeal. Paragraph No.2 is usefully extracted asfollows: "2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para 3of the Circular mentioned above and accordingly, thetable for monetary limits specified in Para 3 of theCircular shall read as follows: 2/3 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, this Tax Case Appeal isdismissed on account of tax effect. However, the substantialquestions of law framed are left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS V)//True Copy// Sub Assistant Registraray To 1.Commissioner of Income Tax,Salary Ward II (2),Chennai. 2/3 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, this Tax Case Appeal isdismissed on account of tax effect. However, the substantialquestions of law framed are left open. In the event the taxeffect is above the limit fixed in the said circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeal to be heard and decided on merits. No costs. Sd/- Assistant Registrar(CS V)//True Copy// Sub Assistant Registraray To 1.Commissioner of Income Tax,Salary Ward II (2),Chennai. 2.Income Tax Appellate Tribunal,Chennai 'C' Bench, Chennai. 3.The Commissioner of Income Tax Appeals-II,Chennai-34. +1cc to Mr.M.Swaminathan, Advocate sr.97826+1cc to Mr.Anand Sashidharan, Advocate sr.97377T.C.A.No.270 of 2018 nrl(co)nr 06/01/2020 3/3 https://hcservices.ecourts.gov.in/hcservices/