Principal Commissioner Of Income Tax 2 v. S.p.nandakumar

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.06.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN ANDTHE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.578 of 2017 Principal Commissioner of Income Tax 2,No.121, Mahatma Gandhi Road,Chennai 600 034. ... Appellant Versus S.P.Nandakumar ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Chennai, “C” Bench, dated 23.06.2016 in I.TA.No.2137/Mds/2015. Appeal against the order of the office of the Commissioner ofIncome Tax-(Appeals)-7, Room No.121, M.G.Road, Nungambakkam,Chennai-34 made in CIT(A)-7/ITA-006/14-15 order dated12.10.2015, Assessment year 2011-2012. against the order of the Income Tax Department, Income TaxOfficer,BusinesswardXIV(4),Chennai-34made inPAN.No.AAIPN2416R, order dated 31.03.2014 Assessment year 2011-2012. For Appellant : Mr.Karthik RanganathanStanding CounselFor Respondent: Mr.S.Sridhar (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant /Revenue, challenging the order dated 23.06.2016 passed by theIncome Tax Appellate Tribunal, 'C' Bench, Chennai, inI.T.A.No.2137/Mds/2015, relating to the assessment year 2011-12. https://hcservices.ecourts.gov.in/hcservices/ 2. By order dated 07.12.2017, this court admitted theaforesaid tax case appeal on the following substantial questionsof law: “(i) Whether the Appellate Tribunal was right inholding that land, on which, the tea factory with itsmachinery is located and let out to a partnership firmfor doing business can be treated as agricultural landand claimed exempt under Section 2(14)(iii)(a)(b) ofthe Income Tax Act? and (ii) Whether the Appellate Tribunal was right inholding the land as agricultural land, when Rule 8 ofthe Income Tax Rules provided for treating the incomefrom sale of tea grown and manufactured by seller asbusiness income?" 3.When the matter was taken up for consideration, thelearned counsel for the appellant / Revenue brought to the noticeof this court the Circular No.17/2019 dated 08.08.2019 issued bythe Central Board Direct Taxes, wherein, it is stipulated thatappeal shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). It is also submitted thatthe tax effect in this appeal is less than the threshold limit. 4.In the light of the aforesaid submissions made by thelearned counsel for the appellant / Revenue, the present appeal,wherein, the tax effect is said to be less than the monetarylimit imposed, is dismissed as withdrawn, keeping open thesubstantial question of law for determination in an appropriatecase. No costs. Assistant Registrar(CS-VII) //True Copy// psa/av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai, 2. Principal Commissioner of Income Tax 2, No.121, Mahatma Gandhi Road, Chennai 600 034. 3. The Income Tax officer, Business Ward XIV(4), Chennai.4. The Commissioner of Income-tax (Appeals) - 7, 121, M.G.Road, Chennai.+1cc to M/s.S.Sridhar, Advocate, S.R.No.34439 T.C.A.No.578 of 2017 AJB(CO)SB(28/06/2022)