Principal Commissioner Of Income Tax Central I v. M/S.india Poultry Farm

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARANandTHE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.194 & 195 of 2018 Principal Commissioner of Income TaxCentral I,No.108, Mahatma Gandhi road,Chennai. ... Appellant in both the appealsVs M/s.India Poultry Farm,No.45, NSB Road,Trichy - 2.PAN: AAA FT 9753 D ...Respondent in both the appeals COMMON PRAYER: Tax Case Appeals filed under Section 260A ofIncome Tax Act, 1961 against the order dated 25.01.2017 inI.T.A.No.1633 & 1634/Mds/2013 on the file of the Income TaxAppellate Tribunal Chennai 'D' Bench for the assessment year2001-02 & 2002-03. ITA.Nos. 1633 and 1634/MDS/2013 against Deputy Commissioner ofIncome Tax, Central Circle IV (I), Chennai 34, in ITA.Nos. 234& 235/MDS/2012 for the Assessment year 2001-2002 and 2002-2003against the Commissioner of Income Tax (Appeals) I, Chennai-34 in ITA.Nos. 16 & 17/09-10 dated 16/11/2011 in PAN AAA FT9753 D for the Assessment Year 2001-2002 and 2002-2003. For Appellant : Mr.T.R.Senthil Kumar For Respondent : Mr.M.Kaushik for Mr.S.Sridhar These tax case appeals have been filed against theorder of the Income Tax Appellate Tribunal dated 25.01.2017 inI.T.A.No.1633 & 1634/Mds/2013 in dismissing the appeals filedby the Department of Revenue against the order of theCommissioner of Income Tax (Appeals) by which the appeal filedby the assessee was allowed. 2.Heard Mr.T.R.Senthil Kumar, learned Counsel for theappellant and Mr.M.Koushik, learned Counsel for thehttps://hcservices.ecourts.gov.in/hcservices/respondent. 3.These Tax Case Appeals are admitted on the followingsubstantial questions of law;“1.Whether on the facts and circumstancesof the case, the AppellateTribunal was correct inholding that there is no 'transfer' of assetwithin the meaning of Section 2(47) of Income TaxAct and in terms of Section 45 (4) in respect ofbuilding and development work? 2.Whether the Appellate Tribunal iscorrect in law in holding that the building anddevelopment work belongs to the partnerShri.T.Manavalan, by ignoring the fact the samewere constructed and developed by the partnershipfirms and depreciation was claimed by theassessee-firm against such assets?" 4.Mr.T.R.Senthil Kumar, learned Counsel for theappellant would submit that the tax effect in this case isless than Rs.50,00,000/- and is covered by Circular No.3/2018dated 11.07.2018 issued by the Director, Central Board ofDirect Taxes, Department of Revenue, Ministry of Finance,Government of India, Delhi. As per the said circular, themonetary limit to file an appeal before the High Court isfixed at Rs.50,00,000/-. In this case, tax effect is lessthan Rs.50,00,000/- and therefore, these appeals have to bedismissed. 5.This Court perused the circular dated 11.07.2018 andParagraph Nos.2 & 3 of the Circular, which prescribes monetarylimit for filing appeal. Paragraph Nos.2 & 3 is usefullyextracted as follows: "2.In supersession of the above circular,it has been decided by the Board that departmentalappeals may be filed on merits before Income TaxAppellate Tribunal and High Courts and SLPs /appeals before Supreme Court keeping in view themonetary limits and conditions specified below3.Henceforth, appeals / SLPs shall not befiled in cases where the tax effect does not exceedthe monetary limits given under: 6.In view of the submissions made by the learnedcounsel appearing on behalf of the appellant and also in viewhttps://hcservices.ecourts.gov.in/hcservices/of the Circular No.3/2018 dated 11.07.2018 issued by the Director, Central Board of Direct Taxes, Delhi, these Tax CaseAppeals are dismissed on account of tax effect. However, thesubstantial questions of law framed are left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeal to be heard and decided onmerits. No costs. 6.In view of the submissions made by the learnedcounsel appearing on behalf of the appellant and also in viewhttps://hcservices.ecourts.gov.in/hcservices/of the Circular No.3/2018 dated 11.07.2018 issued by the Director, Central Board of Direct Taxes, Delhi, these Tax CaseAppeals are dismissed on account of tax effect. However, thesubstantial questions of law framed are left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mentionto this Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar (CS-VIII) //True Copy// ay Sub Assistant Registrar To1.Principal Commissioner of Income TaxCentral I,No.108, Mahatma Gandhi road,Chennai. 2.The Deputy Commissioner of Income Tax,Central Circle IV (I), Chennai 34. 3.The Commissioner of Income Tax (Appeals) I,Chennai – 34.+1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No. 97441+1cc to Mr.S.Sridhar, Advocate, S.R.No.96848 RJI(CO)GN(22/01/2020) T.C.A.Nos.194 & 195 of 2018