Commissioner Of Income Taxsalem v. V.palaniappan

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 17.10.2019 CORAM : THE HON'BLE DR.VINEET KOTHARI, ACTING CHIEF JUSTICEANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case (Appeal) No.360 of 2010 Commissioner of Income TaxSalem... Appellant/ Respondent v. V.Palaniappan.. Respondent/ Appellant Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, 'A' Bench, Chennai, dated 23.10.2009 made inITA.No.773/Mds/2008 against the order dated 07.03.2008 madein C.NO.1321(4) /06-07/IV on the file of the Commissionerof Income Tax, Chennai 34 for the Assessment Year 2003-2004and against the order dated 31.03.2006 made in PAN NO. AGDThe Public Prosecutor, High Court, Madras – 104. 05021 Bon the file of the Income Tax officer,chennai for theAssessment Year 2003-2004 . For Appellant : Mr.M.SwaminathanSr. Standing Counselassisted by Ms.V.PushpaJr. Standing Counsel For Respondent: Mr.Sriramfor M/s.S.Sridhar https://hcservices.ecourts.gov.in/hcservices/ JUDGMENT (Delivered by The Hon'ble Acting Chief Justice) This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed bythe Income Tax Appellate Tribunal, 'A' Bench, Chennai,dated 23.10.2009, for the Assessment Year 2003-2004, byraising the following substantial question of law:“Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunalwas right in setting aside the order of theCommissioner of Income Tax under Section 263on the ground that there was no error in thecomputation of capital gains by the AssessingOfficer without appreciating that the assesseehad held the property only from the date offamily settlement viz. 4.7.2001 and therefore,the indexed cost of acquisition could beallowed only from the year 2001-02?” 2. When the matter is taken up for hearing, the learnedJunior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxesvide Circular No.17/2019 dated 8[th] August 2019, wherein, itis stipulated that appeals shall not be filed/pursued bythe Department before the High Court in cases where the taxeffect does not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to beless than the monetary limit imposed and, therefore, theAppeal filed by the Revenue is dismissed as withdrawn,keeping open the substantial question of law fordetermination in appropriate cases. Sd/- Assistant Registrar(CS) sasiTo: Sub Assistant Registrar 1. Income Tax Appellate Tribunal, Madras "A" Bench, Chennai. Madras "A" Bench, Chennai. 2. The Commissioner of Income Tax, Chennai-IV, Chennai-34. Chennai-34. 3. The Income Tax Officer, Ward II(2), Chennai. Ward II(2), Chennai. +1cc to Mr.M.Swaminathan , Advocate SR.No. 87174Tax Case (Appeal) No.360 of 2010Tax Case (Appeal) No.360 of 2010 A.SK(14/11/2019)