Tca/420/2014 Of Commissioner Of Income Tax v. Koshu V.mahtaney

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.420 of 2014 Commissioner of Income Tax,Chennai. ... Appellant/Respondent-vs-Koshu V.Mahtaney86-E/2, Ambattur Industrial Estate,Ambatture, Chennai-600 058. ... Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 23.01.2014, made in I.T.A.No.2305/Mds/2013 onthe file of the Income Tax Appellate Tribunal 'C' Bench, Chennaifor the assessment year 2007-08, against the order dated19/11/2003 made in ITA No.945 of 13-14 on the file ofCommissioner of Income Tax (Appeal)-VII, Chennai-34 against theorder dated 30/12/2009 for the PAN NO. on the file ofAssistant Commissioner of Income Tax Circle XIII, Chennai-34. For Appellant:Mr.M.Swaminathan, Senior Standing Counsel : assisted by Ms.V.Pushpa, Standing Counsel For Respondent :Mr.R.Sivaraman JUDGMENT(Delivered by T.S.Sivagnanam, J.) This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated23.01.2014, made in I.T.A.No.2305/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2007-08. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal was admitted on 08.09.2014, on the followingsubstantial questions of law:- “(i) Whether on and facts and in thecircumstances of the case the Tribunal was rightin holding that restriction of claim of exemptionunder Section 54EC to Rs.50 Lakhs does not applyto the assessee for the assessment year 2007-2008when the explanatory notes explaining theinsertion of proviso to Section 54EC (1)restricting the investment and exemption to Rs.50Lakhs clearly mentions that the amendment isapplicable for the assessment year 2007-2008 andsuch restriction is also contained in thenotification No.380/2006, dated 22.12.2006? (ii) Whether on and facts and in thecircumstances of the case the Tribunal was rightin holding that the assessee is entitled toexemption of capital gains of Rs.6.44 Crores forwhich the NHAI bonds were allotted and exemptioncannot be restricted to Rs.50 Lakhs on the groundthatthenotificationNo.380/2006,dated22.12.2006 restricting the investment to Rs.50Lakhs did not mention that the amount alreadyinvested beyond Rs.50 Lakhs would not be eligiblefor exemption? (iii) Whether on and facts and in thecircumstances of the case the Tribunal was rightin holding that the assessee is entitled toexemption of capital gains of Rs.6.44 Crores asper Explanation (b) and proviso to Section 54EC(3)inserted by Finance Act, 2007 with retrospectiveeffect from 1.4.2006?” 3.Heard Mr.M.Swaminathan, learned Senior Standing Counselassisted by Ms.V.Pushpa, learned Standing Counsel for theappellant – and Mr.R.Sivaraman, 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 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 appeal to be heard and decided onmerits. No costs. 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 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 appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS V) //True Copy// Sub Assistant RegistrarabrTo1.The Income Tax Appellate Tribunal 'C' Bench, Chennai.2.The Commissioner of Income Tax Appeals-VII, Chennai-34.3.The Assistant Commissioner of Income Tax Circle-XIII, Chennai-34.+1cc to Mr.M.Swaminathan, Advocate Sr.73020T.C.A.No.420 of 2014vg I[co]srg 31/10/2019