Tca/585/2014 Of Commissioner Of Income Tax v. M/S. Mermaid Properties

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.585 of 2014 Commissioner of Income tax,Chennai. ..Appellant/Appellant-vs- M/s.Mermaid Properties P Ltd.,1-C, JVL Towers,117, Nelson Manickam Road,Chennai-600 029. ..Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 06.06.2011, made in I.T.A.No.1656(Mds)/2009 onthe file of the Income Tax Appellate Tribunal Bench 'C', Chennaifor the assessment year 2006-07, preferred against the order ofthe Commissioner of Income Tax (A), Chennai made inITA.No.438/2008-09, dated 06.03.2009 filed against the order ofthe Assistant Commissioner of Income Tax Company Circle IV(2),Chennai -34, dated 29.12.2008 further Assessment year 2006-07. (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 dated06.06.2011, made in I.T.A.No.1656(Mds)/2009 on the file of theIncome Tax Appellate Tribunal Bench 'C', Chennai for theassessment year 2006-07. https://hcservices.ecourts.gov.in/hcservices/ was right in upholding the order of the CIT(A) whoheld that the transfer of land amounted to capitalgains and not as income from adventure in thenature of trade? (ii) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin not considering the fact that the transactionwas an adventure in the nature of trade liable fortax under the head “income from business?” 3.Heard Mr.Karthik Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned counsel for theappellant and Mr.R.Sivaraman, learned counsel for the respondent. 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. Sd/- Assistant Registrar //True Copy// To 1.The Income Tax Appellate Tribunal Bench 'C', Chennai.2.The Commissioner of Income Tax(Appeals),Chennai.3.The Assistant Commissioner of Income Tax,Company Circle IV (2), Chennai -34. AKM/19.11.19/2P-4C / T.C.A.No.585 of 2014