The Commissioner Of Income Tax, Chennai v. M/S.kutty Flush Doors & Furniture Company Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 05.02.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.Nos.514 & 515 of 2013 The Commissioner of Income Tax,Chennai.... Appellant in both TCAsVs. M/s.Kutty Flush Doors & FurnitureCompany Pvt. Ltd.,167, Poonamallee High Road,Koyambedu, Chennai – 600 107.... Respondent in both TCAs Appeals preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "B" Bench, dated 18.02.2013 in I.TA.Nos.1211/Mds/2010,1547/Mds/ 2010 Assessment Year 2006-07. TCA.No.514 & 515 of 2013: against the order of the Commissionerof Income tax(Appeals)-III 121, Mahatma gandhi Road, Chennai 600034 ITA.No.437/08-09/A.III dated 28/06/2010 PAN. forthe Assessment year 2006-07 and against the order of theAssistant Commissioner of Income Tax, Company Circle III(4) RoomNo.514, New block 121 M.G.Road Chennai 600 034 dated 29/12/2008PAN/GIR.No.AAACK1422F ward/Circle ACIT/Company CircleII(4)Status Company for the Assessment year 2006-2007 Respectively. For Respondent : Mr.S.Sridhar(in both TCAs)COMMON JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthick Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Mr.S.Sridhar,learned counsel for the respondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainsttheorderdated18.02.2013madeinI.TA.Nos.1211/Mds/2010 and 1547/Mds/2010 on the file of theIncome Tax Appellate Tribunal, Chennai, "B" Bench (for brevity,the Tribunal) for the Assessment Year 2006-07. 3.The appeals were admitted on 23.09.2013 on the followingsubstantial questions of law:“1)Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in directing theAssessing Officer to adopt fair market value(FMV) of the property as on 01.04.1981 atRs.5,97,062/-?2)Whether guideline value issued by theState Government could not be the basis forarriving at the Fair Market Value of the propertyespecially when the assessee did not produce anyother evidence other than a valuation reportwhich supports his case?3)Whether the Tribunal was right in holdingthat the average value is to be adopted forarriving at the FMV of the property as on01.04.1981 especially when no such method isprovided in the IT Act or its Rules?4)Is not the finding of the Tribunalperverse especially after holding that reverseindexation method adopted by the assessee'svaluer was not absolute free from errors andconsequently directing the FMV of the property tobe arrived at by taking the average value of theclaim made by the assessee and that of theDepartment?” 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.17/2019dated 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 CaseAppeals are dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to the https://hcservices.ecourts.gov.in/hcservices/ Revenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. 5.In the light of the said submissions, the above Tax CaseAppeals are dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to the https://hcservices.ecourts.gov.in/hcservices/ Revenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/- Asst.Registrar (CS VII) /true copy/Sub Asst. RegistrarvaTo1.The Income Tax Appellate Tribunal,(Appeals)-III Chennai, "B" Bench2.The Commissioner of Income Tax, 121 Mahatma Gandhi RoadChennai-343.The Assistant Commissioner of Income Tax,Company Circle II, (4)Room No.514 New Block 121 M.G.RoadChennai 600 034T.C.A.Nos.514 & 515 of 2013ad(co)aa25/02/2021