Principal Commissioner Of Income Tax 4 v. M/S.kayaram Hotel Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Principal Commissioner of Income Tax 4,No.121, Mahatma Gandhi Road,Nungambakkam, Chennai... Appellant in all Appeals -vs- M/s.Kayaram Hotel Pvt. Ltd.,2, Harrington Road, Chennai-600 031.PAN: AAB CK 8077 D.. Respondent in all AppealsAppeals under Section 260A of the Income-tax Act, 1961,against the common order dated 01.06.2016, made inI.T.A.Nos.402/Mds/2013,1095/Mds/2014,2215/Mds/2015and2216/Mds/2016 on the file of the Income Tax Appellate Tribunal'A' Bench, Chennai for the assessment years 2003-04, 2010-11,2006-07 and 2009-10 respectively, against the order dated 19/10/2015 made in ITA No.31/11-12on the file of the Commissioner of Income Tax (Appeals)-8,Chennai for the Assessment Year 2009-2010, against the order dated 12/2/14 made in ITA No.1605/13-14 onthe file of the Commissioner of Income Tax (Appeals)-II, Chennaifor the Assessment Year 2010-11, Chennai., against the order dated 29/12/2008, 07/10/2009, 05/12/2011and 31/12/2012 made in PAN GIR No. on the file of theAssistant Commissioner of Income Tax Company Circle-II(4)Chennai for the Assessment Year 2006-07, 2003-04, 2009-10 and2010-11 respectively against the order dated 07/09/2012 made in ITA No.150/09-10on the file of the Commissioner of Income Tax (Appellate)-II,Coimbatore for the Assessment Year 2003-2004. These appeals filed by the Revenue under Section 260A of theIncome-tax Act, 1961 are directed against the common order dated01.06.2016, made in I.T.A.Nos.402/Mds/2013, 1095/Mds/2014,2215/Mds/2015 and 2216/Mds/2016 on the file of the Income TaxAppellate Tribunal 'A' Bench, Chennai for the assessment years2003-04, 2010-11, 2006-07 and 2009-10 respectively. 2.The appeals have been filed raising the followingsubstantial questions of law:-“(i) Whether on the facts and circumstances ofthe case and in law, Appellate Tribunal was rightin not following the latest decision of theSupreme Court dated 28.09.2015 in assessee's owncase reported in [2015] 63 taxamann.com 301 (SC)and following the earlier judgment dated09.04.2015 in the case of Chennai Properties &Investments Ltd? and (ii) Whether on the facts and circumstances ofthe case and in law, Tribunal was right indirecting the assessing officer to assess 75% ofthe rental receipts to be assessed under the head'Income from House Property' and balance 25% underthe head 'Income from Business' when assessee wasnot engaged in any business activity and suchbifurcation made without any rationale?” 3.Heard Mr.Karthik Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned Standing Counsel forthe appellant – and Mr.A.S.Sriraman, learned counsel forMr.S.Sridhar, learned Counsel for the respondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019,dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeals to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar (abr) To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. 2.The Commissioner of Income Tax Appeals-8, Chennai. 3.The Commissioner of Income Tax Appeals-II, Chennai. It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeals to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar (abr) To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. 2.The Commissioner of Income Tax Appeals-8, Chennai. 3.The Commissioner of Income Tax Appeals-II, Chennai. 4.The Commissioner of Income Tax (Appeals)-II, Coimbatore. 5.The Assistant Commissioner of Income Tax Company Circle-II(4) Chennai. T.C.A.Nos.196 to 199 of 2017 rsv[co]srg 18/11/2019