Tax Case Appeal v. M/S.trans India Resorts Ltd., Chennai-17

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 20.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.52 of 2011Commissioner of Income Tax-I, Chennai...Appellant/ Respondent VsM/s.Trans India Resorts Ltd.,Chennai-17....Respondent/ Appellant APPEAL under Section 260A of the Income Tax Act, 1961againsttheorderdated16.7.2010madeinITA.No.966/Mds/2001 on the file of the Income Tax AppellateTribunal, Chennai 'D' Bench for the assessment year 1994-95Against the order dated 30.03.2001 in IT Appeal No.18/00-01on the file of the office of the Commissioner of IncomeTax Appeals II, Chennai 34 against the order dated30.03.2000 vide PAN/GIR NO.1-T on the file of the DeputyCommisioner of Income Tax ,Central Circle -1(2),chennai 34. For Appellant :Mr.M.Swaminathan, SSC assisted byMs.V.Pushpa, SC For Respondent:Mr.P.Chandrasekar JUDGMENT We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, assisted by Ms.V.Pushpa learned Standing Counsel–appearingfortheappellantRevenueandMr.P.Chandrasekar, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 is directed against the orderdated 16.7.2010 made in ITA.No. 966/Mds/2001 on the file ofthe Income Tax Appellate Tribunal, Chennai 'D' Bench for https://hcservices.ecourts.gov.in/hcservices/ the assessment year 1994-95. 3. The appeal was admitted on 28.2.2011 on the followingsubstantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the IncomeTax Appellate Tribunal was right inholding that a part of the time sharemembership fees receivable from themembers upfront at the time ofenrollment could be deferred in theabsence of any such provision in theIncome Tax Act to defer revenue? ii. Whether, on the facts and in thecircumstances of the case, the IncomeTax Appellate Tribunal was right inholding that income from membership feecould be deferred to future years onthe assumption that some unquantifiedfuture liabilities existed ? andiii. Whether, on the facts and inthe circumstances of the case, theIncome Tax Appellate Tribunal was rightin not deciding the basis, on which,the said receipts referred to in thepreceding questions should be treatedas deferred income ?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenueon account of the low tax effect in terms of CircularNo.17/2019 dated 08.8.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 Crore. It is further submitted that thetax effect in this case is less than the threshold limit. 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect.The substantial questions of law framed are left open. Inthe event the tax effect is above the threshold limit fixedin the said circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeal to beheard and decided on merits. No costs. Sd/- Assistant Registrar(insp cell) //True Copy// Sub Assistant Registrar To The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2.The Commissioner of Income Tax Appeals II,Chennai 34Chennai 34 3.The Deputy Commisioner of Income Tax, Central Circle -1(2),chennai 34. Central Circle -1(2),chennai 34. +1cc to Mr.P.Chandrasekar , Advocate SR.No. 71922 +1cc to Mr.M.Swaminathan , Advocate SR.No. 70580 TCA.No.52 of 2011 A.SK(23/10/2019)