Tca/343/2013 Of Commissioner Of Income Tax v. M/S Macro Marvel Projects

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.343 and 344 of 2013 T.C.A.No.343 of 2013:-Commissioner of Income Tax,Chennai. Chennai... Appellant/Appellant-vs-M/s.Macro Marvel Projects Ltd.,Glenden Place, 813, Poonamallee High Road,Kilpauk, Chennai-600 010... Respondent/RespondentAppeal under Section 260A of the Income-tax Act, 1961,against the order dated 27.11.2012, on the file of the Income-taxAppellateTribunal'C'Bench,Chennai,inI.T.A.No.1685/Mds/2010 for the assessment year 2005-06, against the order passed by the Commissioner of Income Tax(Appeals)V, Chennai-34, made in ITA No.256/07-08 dated08/10/2010 and 01/07/2010 and against the Assessment orderpassed by the Assistant Commissioner of Income Tax, CompanyCircle IV(1), Chennai-34 made in PAN/GIR No. /MA 254dated 31/12/2007. T.C.A.No.344 of 2013:- Commissioner of Income Tax,Chennai... Appellant/Respondent-vs- M/s.Macro Marvel Projects Ltd.,Glenden Place,813, Poonamallee High Road,Kilpauk, Chennai-600 010... Respondent/Appellant Appeal under Section 206A of the Income-tax Act, 1961,against the order dated 27.11.2012, on the file of the Income-taxAppellateTribunal'C'Bench,Chennai,inC.O.No.117/Mds/2011 in I.T.A.No.1685/Mds/2010 for the assessmentyear 2005-06, https://hcservices.ecourts.gov.in/hcservices/ against the order passed by the Commissioner of Income Tax(Appeals)V, Chennai-34, made in ITA No.256/07-08 dated08/10/2010 and 01/07/2010 against the Assessment order passed bythe Assistant Commissioner of Income Tax, Company Circle IV(1),Chennai-34 made in PAN/GIR No. /MA 254 dated 31/12/2007. For Appellant : Mr.S.Rajesh,(In both Appeals)Standing Counsel : For Mr.Karthik Ranganathan, Senior Standing CounselFor Respondent : Mr.R.Sivaraman(In both Appeals)COMMON JUDGMENT(Delivered by T.S.Sivagnanam, J.) These appeals filed by the appellant/Revenue under Section260A of the Income-tax Act, 1961, are directed against thecommon order dated 27.11.2012, passed by the Income-taxAppellate Tribunal 'C' Bench, Chennai, in I.T.A.No.1685/Mds/2010and C.O.No.117/Mds/2011 in I.T.A.No. 1685/Mds/2010 for theassessment year 2005-06. 2.The above appeals were admitted, on 04.11.2013, on thefollowing substantial questions of law:-“(i) Whether in the facts and circumstances ofthe case the Income Tax Appellate Tribunal isright in holding that assessee is to be givenproportionate allowance of deduction under Section80IB of the Income Tax Act in respect ofresidential units with less than 1500 sq.ft.? (ii) Whether in the facts and circumstances ofthe case, the Income Tax Appellate Tribunal isright in upholding the order of the Commissionerof Income Tax that the claim made by the assesseethrough revised computation statement is to beconsidered by the Assessing Officer, though suchclaim was not made through a valid return ofincome? (iii) Whether in the facts and circumstances ofthe case the Income Tax Appellate Tribunal isright in directing the Assessing Officer to consider the issue of disallowance under Section40(1)(ia) afresh in accordance with law?” 3.Heard Mr.S.Rajesh, learned Standing Counsel for Mr.KarthikRanganathan, Senior Standing Counsel for the appellant andMr.R.Sivaraman, 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. consider the issue of disallowance under Section40(1)(ia) afresh in accordance with law?” 3.Heard Mr.S.Rajesh, learned Standing Counsel for Mr.KarthikRanganathan, Senior Standing Counsel for the appellant andMr.R.Sivaraman, 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 III) //True Copy// abr Sub Assistant Registrar To 1.The Assistant Commissioner of Income-tax, Company Circle IV(1), Chennai-600 034. 2.The Commissioner of Income-tax (Appeals)-V, 121, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 3.The Income-tax Appellate Tribunal 'C' Bench, Chennai. T.C.A.Nos.343 and 344 of 2013 bs[co]srg 05/11/2019