Tca/38/2012 Of Commissioner Of Income Tax-1 v. M/S Arihant Foundations

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE MR.JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R.HEMALATHA T.C.A.NO.38 OF 2012 Commissioner of Income Tax -I,Chennai.... Appellant/Appellant M/s.Arihant Foundations & Housing Limited,271, Poonamallee High Road,Kilpauk, Chennai - 600 010.... Respondent/Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “C” Bench, dated 20.07.2011 in I.TA.No.657/Mds/2011,Assessment Year 2005-06 and against the Order of theCommissioner of Income Tax (Appeals)-III, dated 14.01.2011 madein ITA.No.147/09-10/A-111 and against the order of the AssistantCommissioner of Income Tax Company Circle (1), Chennai dated26.12.2007 made in PA/G.I.R.No.AAAC47402P/AX6-691 to theAssessment Year 2005-06. For Appellant : Mr.T.Ravi Kumar, Senior Standing Counsel For Respondent : Ms.Sriniranjani for Mr.N.Muthukumar JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.T.Ravi Kumar, learned Senior StandingCounsel for the appellant/Revenue and Ms.Sriniranjani, learnedcounsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 20.07.2011 made in I.TA.No.657/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai, “C” Bench(for brevity, the Tribunal) for the Assessment Year 2005-06. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 27.03.2012 on the followingsubstantial questions of law: “1)Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in dismissing theRevenue's appeals as infructuous without goinginto the reasons discussed in the assessmentorders wherein it has been made a clear that theChennai Metropolitan Development Authority, whichissued the Plan Permit had not issued anycompletion certificate to the effect that theproject was completed before 31.03.2008 which wascondition to be satisfied for being eligible forthe deduction u/s. 80-1B(10)?" 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.17/2019dated 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 as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar(CS IX) //True Copy// mtl Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai, “C” BenchChennai, “C” Bench 2.The Commissioner of Income Tax (Appeals)-III,Chennai. 3.The Assistant Commissioner of Income Tax,Company Circle 1(1), Chennai. +1cc to Mr.G.Baskar, Advocate, S.R.No.35425+1cc to Mr.T.Ravi Kumar, Advocate, S.R.No.35171 T.C.A.No.38 of 2012 VGII(CO)CS/16/08/2021