The Commissioner Of Income Tax, Chennai v. M/S.ar Holdings & Electronics Ltd., Chennai-4

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 30.8.2019 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.429 to 431 of 2016 & CMP.Nos.9080 &9081 of 2016 in TC.NO.430&431/2016 The Commissioner of Income Tax, Chennai ...Appellant in all Appeals VsM/s.AR Holdings & ElectronicsLtd., Chennai-4...Respondent in all Appeals PAN NO.AAECA 5650 K APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 13.11.2015 made inITA.Nos.1741 to 1743/Mds/2013 on the file of the Income TaxAppellate Tribunal, Chennai 'D' Bench for the assessmentyears 2006-07 to 2008-09 and against the order of the dated19.03.13 and made in ITA.NO.188,189&187/2012-13 on the fileof the Commissioner of Income Tax Appeals VI,chennai forthe assessment years 20006-2007,2007-2008 and against theorder dated 09.12.2011 and made in PAN /GIR NO.AAECA 5650 Kon the file of the Assistant commisioner of IncomeTax,Company Circle I(2) chennai. For the Assessment year2006-2007,2007-08, 2008-09 respectively. For Appellant: Mr.T.Ravikumar, SSC andMrs.R.Hemalatha, SSCFor Respondent:Mr.A.S.Sriraman COMMON JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J)We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha,learned Senior Standing Counsel appearing for the appellant– Revenue and Mr.A.S. Sriraman, learned counsel appearingfor the respondent – assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals, filed by the Revenue under Section260A of the Income Tax Act, 1961, are directed against thecommon order dated 13.11.2015 made in ITA.Nos.1741 to1743/Mds/2013 on the file of the Income Tax AppellateTribunal, Chennai 'D' Bench for the assessment years 2006-07 to 2008-09. 3. The appeals were admitted on 18.7.2016 on thefollowing substantial questions of law : “i. Whether, on the facts andcircumstances of the case, the Tribunalwas right in upholding the order of theCommissioner of Income Tax (Appeals) inholding that the lease rental incomefor usage of properties and theamenities are to be treated as businessincome only ? Andii. Is not the finding of theTribunal bad especially when the primeobject of the assessee was to let outthe property and give additional rightsof using the furniture and fittings,which are to be treated as income fromhouse property only?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by theRevenue on account of the low tax effect in terms ofCircular No.17/2019 dated 08.8.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the HighCourt has been increased to Rs.1 Crore. It is furthersubmitted that the tax effect in the respective cases isless than the threshold limit. 5. In the light of the said submissions, the above taxcase appeals are dismissed on account of the low taxeffect. The substantial questions of law framed are leftopen. In the event the tax effect in the respective casesis above the threshold limit fixed in the said circular,liberty is granted to the Revenue to make a mention to thisCourt to restore the appeals to be heard and decided onmerits. No costs. Consequently, the connected CMPs are alsodismissed. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar To THE INCOME TAX APPELLATE TRIBUNAL, CHENNAI 'D' BENCH. 2.THE COMMISSIONER OF INCOME TAX,CHENNAI3. THE COMMISSIONER OF INCOME TAX APPEALS VI,CHENNAI 4.THE ASSISTANT COMMISIONER OF INCOME TAX,COMPANY CIRCLE I(2) CHENNAI.COMPANY CIRCLE I(2) CHENNAI. +1cc to MR.S.Sridhar, Advocate SR.No. 76087 +1cc to Mr.T.Ravikumar , Advocate SR.No. 75261 TCA.Nos.429 to 431 of 2016 &CMP.Nos.9080 & 9081 of 2016 vdA.SK(14/11/2019)