Tax Case Appeal v. Commissioner Of Income Tax, Central Circle Iii, Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 17.06.2020 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA TAX CASE APPEAL NO.521 OF 2014 ...Appellant/AppellantVs Commissioner of Income Tax,Central Circle III, Chennai. M/s.Prashanth Overseas SuppliesHouse Private Limited,New No.13 (Old No.8), 15[th] Avenue,Harington Road, Chetpet,Chennai-600 021.PAN: ...Respondent/RespondentAPPEAL under Section 260A of the Income Tax Act, 1961againsttheorderdated27.02.2014madeinI.T.A.No.532/Mds/2013 on the file of the Income TaxAppellate Tribunal 'B' Bench, Chennai for the assessmentyear 2007-08 against the order of the Commissioner ofIncome Tax(Appeals), II-Chennai, in ITA 137/11-12 dated31.12.2012, against the order of Assistant Commissioner ofIncome Tax, Central Circle III(4) Chennai – 34 inPAN.GIR.NO.AAACP1632L dated 23.12.2011 Assesment Year 2007-08. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel assisted by Ms.K.G.Usha Rani, Junior Standing CounselRespondent : Mr.G.Baskar For Mr.N.Muthukumar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel assisted by Ms.K.G.Usha Rani, learnedJunior Standing Counsel appearing for the appellant –RevenueandMr.G.Baskar,learnedcounselforMr.N.Muthukumar, learned counsel for the respondent –assessee. 2. This appeal, filed by the Revenue under Section 260Aof the Income Tax Act, 1961 is directed against the orderdated 27.02.2014 made in I.T.A.No.532/Mds/2013 on the fileof the Income Tax Appellate Tribunal 'B' Bench, Chennai forthe assessment year 2007-08. 3. The appeal was admitted on 01.09.2014 on thefollowing substantial questions of law : “1. Whether on the facts and in thecircumstances of the case, the IncomeTax Appellate Tribunal was right inupholding the order of the CIT(A) indeleting the addition made by theAssessing Authority towards long termscapitalgainamountingtoRs.97,65,508/-? 2. Whether on the facts and in thecircumstances of the case the IncomeTax Appellate Tribunal was correct inholding that the Assessing Officer hadmade the addition under the head“capital gain” based on dumb documentseized during the survey, ignoring thefact that the onus was on the assesseeto prove that the value of the landshould not be taken as per the draftassessment found and seized? 3.Whether on the facts and in thecircumstances of the case, theIncome Tax Appellate Tribunal wascorrect in failing to note thatthe date of agreement of sale was2.3.2007 and it is not possiblethat the value of the land isdecreased drastically from Rs.1Crore to Rs.35 lakhs within ashort span of a fortnight? 4. Whether in the facts andcircumstances of the case, the IncomeTax Appellate Tribunal is correct infailing to note that any person ofordinary financial prudence would notaccept less than half of the agreedprice and enter into a fresh dealwithin a short span of a fortnight?” 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 questiond 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. Sd/- Assistant Registrar //True Copy// 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect.The substantial questiond 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. Sd/- Assistant Registrar //True Copy// Sub Assistant RegistrarabrTo 1.The Income Tax Appellate Tribunal 'B' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)II, Chennai.3.The Assistant Commissioner of Income Tax, Central Circle III(4), Chennai 34. PVS(CO)KKV/07/10/2020