Tca/89/2011 Of The Commissioner Of Income Tax v. Shri K.gangaprasad

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.11.2018 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.89 of 2011 The Commissioner of Income Tax,Ward XIII(3), Chennai.... Appellant-vs-Shri K.Gangaprasad... Respondent Tax Case (Appeal) filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income-tax AppellateTribunal, “A” Bench, Chennai, dated 17.09.2010, passed inI.T.A.No.1044/Mds/2010 for the assessment year 2006-2007,against the order of the Commissioner of Income Tax (Appeals)-XII, Chennai made in ITA No.125/08-09, order dated 19.03.2010for the assessment year 2006-07 and against the order of theIncome Tax Officer, Ward XIII(2), Chennai, made in PAN/GIRNo. , order dated 31/12/2008 for the assessment year2006-2007. For Appellant:M/s.R.Hemalatha Senior Standing CounselFor Respondent :Mr.M.P.Senthil KumarJUDGMENT (Judgment was delivered by T.S.Sivagnanam, J.) This appeal by the appellant/Revenue is directed againstthe order of the Income-tax Appellate Tribunal, “A” Bench,Chennai, dated 17.09.2010, passed in I.T.A.No.1044/Mds/2010 forthe assessment year 2006-2007. 2.Heard M/s.R.Hemalatha, learned Senior Standing Counsel forthe appellant/Revenue and Mr.M.P.Senthil Kumar, learned counselfor the respondent/assessee. 3.This Appeal has been admitted on 14.03.2011, on thefollowing substantial questions of law:- https://hcservices.ecourts.gov.in/hcservices/ “1.Whether on the facts and circumstances ofthe case, the Tribunal was justified in adopting1981 as the base year for the purpose ofadopting the cost of acquisition for working outthe capital gains? 2.Whether on the facts and circumstances ofthe case, the Tribunal was justified in adoptingRs.1,00,000/- per ground as a fair market valueas on 01.04.1981 in the absence of any othermaterial to justify the same? 4.We have perused the Order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Questions of Law, framed forconsideration, are left open. No costs. The Revenue is atliberty to seek for restoration of appeal if at a later point oftime, it is found that the tax effect is above the thresholdlimit or to fall under the exceptional clauses mentioned in theCircular. Sd/- Assistant Registrar(CO) //True Copy//cse Sub Assistant Registrar To1) The Income-tax Appellate Tribunal, A Bench, Chennai. 2) The Commissioner of Income Tax (Appeals)-XII, 121, Mahatma Gandhi Road, Nungambakkam3) The Income Tax Officer, Business Ward XIII(2), Chennai - 34. +one cc to M/s.M.Swaminathan, Advocate, SR No.80338 cp(co)ssm(20/12/18)