The Commissioner Of Income Tax, Chennai v. Common Judgment

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.567 and 568 of 2015 The Commissioner of Income Tax,Chennai....AppellantVsSmt. Vijaya Srinivasan...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 30.08.2013 made in ITA.Nos.135and 136/Mds/2013 on the file of the Income Tax AppellateTribunal, Chennai 'A' Bench for the assessment year 2005-06 and2008-09. against the order of the Commissioner of Income Tax (A) -VI,Chennai dated 09-07-2012 made in I.T.A.Nos.533/10-11 and 534/10-11 for the Assessment years 2005-06 & 2008-2009 respectively andagainst the order of Assistant Commissioner of Income Tax Circle– II, Chennai order dated 31.12.2010 made in P.A.No/GIR.No.ACEPU1779M. For Appellant:Mr.T.Ravikumar, SSC assisted byMs.R.Hemalatha, SSCFor Respondent:Mr.R.Kumar COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.Ravikumar, learned Senior Standing Counselassisted by Ms.R.Hemalatha, learned Standing Counsel appearingfor the appellant – Revenue and Mr.R.Kumar, learned counselappearing for the respondent - assessee. 2.These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 30.08.2013 made in ITA.Nos.135 and 136/Mds/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2005-06 and 2008-09.3.The appeals were admitted on 18.08.2015 on the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ “(i) Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatshares held by the assessee for a longer period isto be treated as investment resulting in long termcapital gains and shares held for shorter durationwas to be considered as income from business? (ii) Whether the Tribunal was right in amendingthe order passed in ITA 1846 and 1847 which amountedto review of the original order passed inM.P.Nos.101 and 102/mds/2013 especially when theTribunal did not have any such power of review? (iii) Is not the finding of the Tribunalperverse especially when it had held the shares heldfor a period of 30 days were to be treated as shortterm and for a period of more than 30 days were tobe treated as long term investment and the samecannot be the yardstick to determine the taxabilityof income under the head business? and (iv) Whether the computation of income on profiton sale shares constitute long term capital gains orbusiness income?" 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.17/2019dated 08.8.2019 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 the respectivecases is less than 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 in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs.Sd/-Assistant Registrar (CS-VI) //True Copy// cse https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. Chennai 'A' Bench. 2.The Commissioner of Income Tax (Appeals)-VI, Chennai. Chennai. 3.The Assistant Commissioner of Income Tax, Circle – II, Chennai. Circle – II, Chennai. +1cc to Mr. T.Ravikumar, Advocate, S.R.No. 73346+2cc to Mr. T.N.Seetharaman, Advocate, S.R.No. 74489 & 74490 //True Copy// cse https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. Chennai 'A' Bench. 2.The Commissioner of Income Tax (Appeals)-VI, Chennai. Chennai. 3.The Assistant Commissioner of Income Tax, Circle – II, Chennai. Circle – II, Chennai. +1cc to Mr. T.Ravikumar, Advocate, S.R.No. 73346+2cc to Mr. T.N.Seetharaman, Advocate, S.R.No. 74489 & 74490 TCA.Nos.567 and 568 of 2015CP(CO)GN(06/11/2019)