Of The Hon'ble Supreme Court In The Case Ofsargam Cinema v. Cit (2010) 328 Itr 513 Andorder Of Hon'ble Madras High Court In Thecase Of K.k.sehaiyer Vs. Cit (2000) 246 Itr351 ?

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 14.10.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE M.S.RAMESH Tax Case (Appeal) No.479 of 2012 Commissioner of Income TaxCentral III, 121, M.G.Road,Chennai 34...Appellant vsM/s.Vel Shri R.RangarajanDr.Sagunthala RangarajanEducational AgencyOld no.24, New No.38ABM Avenue, Chennai 600 028...RespondentAppeal filed against the order of the Income Tax AppellateTribunal Madras "C" Bench dated 07.06.2012 in ITANo.1935/MDS/2011 preferred against the ITA.No 329/10-11 dated23.08.2011 on the file of the office of the Commissioner ofIncome tax(Appeals)-II, Chennai 34 filed against the Assessmentunder dated 31.12.2010 for the Assessment year 2006-2007 passedby the Assistant Commissioner of Income Tax Central Circle III(3) Chennai-34. (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 dated 07.06.2012 in ITANo.1935/MDS/2011, by raising the following substantial questionsof law: "1.Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in deleting the additionunder Section 69 by relying upon the order https://hcservices.ecourts.gov.in/hcservices/ of the Hon'ble Supreme Court in the case ofSargam Cinema vs. CIT (2010) 328 ITR 513 andorder of Hon'ble Madras High Court in thecase of K.K.Sehaiyer vs. CIT (2000) 246 ITR351 ? 2.Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in deleting the additionunder Section 69 by not following thedecision in the case of Indira HospitalResearch and Diagnostic Centre vs. AICTreported in 208 Taxman 124? 3. Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in deleting the additionmade by the Assessing Officer towardsinterest when the assessee has not provedbefore the Assessing Officer that the fundsadvanced to trustees were out of surplusfunds and not out of borrowed funds?" 2. When the matter is taken up for hearing, learnedStanding Counsel brought to our notice the Circular issued bythe Central Board of Direct Taxes vide Circular No.17/2019 dated8 August 2019, wherein, it is stipulated that appeals shall notbe filed/pursued by the Department before the High Court incases where the tax effect does not exceed Rs.1,00,00,000/-(Rupees One Crore). 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 withdrawn, keeping open thesubstantial questions of law for determination in appropriatecases. No costs. -s/d- Assistant Registrar True Copy Sub-Assistant Registrar tar To The Income Tax Appellate Tribunal Madras "C" Bench,Chennai 2.The Commissioner of Income TaxCentral II, Chennai-343.The Assistant Commissioner of Income TaxCentral Circle III(3)Chennai 34 Tax Case (Appeal) No.479 of 2012aa09/11/2020