Tca/254/2013 Of Commissioner Of Income Tax v. Shri Subashchand Nahar

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.254 of 2013 Commissioner of Income Tax,Central II, 108, M.G.Road,Chennai-600 034... Appellant/Appellant-vs- Shri.Subashchand Nahar,6/1, Nahar Drive,Maharani Chinnamma Road,Alwarpet, Chennai-600 018.PAN: AAE PN 6254 B.. Respondent/Respondent Appeal under Section 260A of the Income-tax Act, 1961,against the order dated 26.11.2012 on the file of the Income-taxAppellate Tribunal 'D' Bench, Chennai, in I.T.A.No.2139/Mds/2010for the assessment year 2006-07 and against the Order of theCommissioner of Income Tax (Appeals)-II, Chennai -34, made inITA Nos.234/07-08,dated 20.09.10 and against the Order of theDeputy Commissioner of Income Tax, Central Circle-II (1),Chennai -34, and made in PAN.- dated 31.12.2007 forthe Assessment Year 2006-07. :for Mr.M.Swaminathan,Senior Standing Counsel This appeal filed by the appellant/Revenue under Section 260Aof the Income-tax Act, 1961, is directed against the order dated26.11.2012, passed by the Income-tax Appellate Tribunal 'D'Bench, Chennai, in I.T.A.No.2139/Mds/2010 for the assessmentyear 2006-07. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted, on 09.07.2013, on thefollowing substantial questions of law:- “(i) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in holding that urban land sold by theassessee falls within the meaning of Capital Assetas per Section 2(14)(iii)(b) of the Income Tax Actduring the relevant period 2005-06? (ii) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in dismissing the department appealwithout adjudicating legal grounds raised by theDepartment before the Tribunal and simplyfollowing its order passed in the case of otherfamily members? (iii) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in holding that land is agriculturalland, when the land was developed along with theadjacent lands into plots which fact indicatesthat the land in question is not agricultural landduring the relevant previous year? (iv) Whether the Appellate Tribunal is right indeleting the addition of Rs.50 lakhs asunexplained cash when the respondent assessee wasunable to prove from the books of accounts and thecash balance as claimed by him as on 26.10.2005?” 3.Heard Ms.S.Premalatha, learned Junior Standing Counsel forMr.M.Swaminathan, learned Senior Standing Counsel for theappellant and Mr.J.Nareshkumar, learned counsel for therespondent. 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is 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 caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the event https://hcservices.ecourts.gov.in/hcservices/ the 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 appeal to be heard and decided onmerits. No costs. abr Sd/- Assistant Registrar //True Copy// To Sub Assistant Registrar 1.The Deputy Commissioner of Income Tax, Central Circle II(1), Chennai. 2.The Commissioner of Income-tax (Appeals)-II, 46, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 3.The Income-tax Appellate Tribunal 'D' Bench, Chennai, +1cc to Mr.M.Swaminathan, Advocate, SR.No.72337 https://hcservices.ecourts.gov.in/hcservices/ the 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 appeal to be heard and decided onmerits. No costs. abr Sd/- Assistant Registrar //True Copy// To Sub Assistant Registrar 1.The Deputy Commissioner of Income Tax, Central Circle II(1), Chennai. 2.The Commissioner of Income-tax (Appeals)-II, 46, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 3.The Income-tax Appellate Tribunal 'D' Bench, Chennai, +1cc to Mr.M.Swaminathan, Advocate, SR.No.72337 +1cc to Mr.J.Naresh Kumar, Advocate, SR.No.72325 T.C.A.No.254 of 2013Kak(18/10/2019)