The Commissioner Of Income Tax, Coimbatore v. M/S.sreevatsa Real Estates Pvt. Ltd., Coimbatore-43

In the High Court of Judicature at Madras Dated : 30.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.213 to 216 of 2016 The Commissioner of Income Tax, Coimbatore...Appellant/RespondentVs M/s.Sreevatsa Real Estates Pvt.Ltd., Coimbatore-43....Respondent/Appellant APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 29.5.2015 made inITA.Nos.2250/Mds/2012,2100/Mds/2014,22/Mds/2013and2236/Mds/2014 on the file of the Income Tax Appellate Tribunal,Chennai 'A' Bench respectively for the assessment years 2009-10,2010-11, 2009-10 and 2010-11 against the order of theCommissioner of Income Tax (Appeals)1, Coimbatore dated06.05.2013 and 18.10.2012 in Appeal No.s 01/2012-2013 AX 2009-2010 and Appeal No. 297/2011-2012 for the Assessment year 2009-2010 against the order of the Additional Commissioner of IncomeTax, Range I, Coimbatore dated 27.12.2011 in P.A.N. No.AADCS0177J for the assessment year 2009-2010 and 2010-2011. For Appellant:Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 29.5.2015 made in ITA.Nos.2250/Mds/2012, 2100/Mds/2014,22/Mds/2013 and 2236/Mds/2014 on the file of the Income TaxAppellate Tribunal, Chennai 'A' Bench respectively for the https://hcservices.ecourts.gov.in/hcservices/ assessment years 2009-10, 2010-11, 2009-10 and 2010-11. 3. The appeals were admitted on 20.4.2016 on the followingsubstantial questions of law :“TCA.Nos.213 & 214 of 2016 : i. Whether the Appellate Tribunal wascorrect in holding that the assessee iseligible for deduction under Section 80IB onpro-rata basis in respect of compositeproject wherein some of the units had builtup area exceeding 1,500 sq.ft., which is notprovided under Section 80IB(10)(c) of theIncome Tax Act? and ii. Whether the Appellate Tribunal wascorrect in overlooking the fact that theproject also consists of 20 villas that donot conform to the provisions of Section80IB(10)(c) and as such, the entire projectis not eligible for deduction under Section80IB of the Income Tax Act ?TCA.No.215 of 2016 : Whether the Appellate Tribunal wascorrect in holding that the assessee iseligible to claim the value of closing stockof the Thiruvanmiyur land at market pricewhen the assessee valued the closing stockof all other lands at cost price ? AndTCA.No.216 of 2016 : Whether the Appellate Tribunal wascorrect in setting aside the issue of claimof deduction of proportionate commonexpenditure to the Assessing Officer, whenthe same was originally considered by theAssessing Officer and also distinguished thejudgment relied by the assessee whiledenying the claim ?” 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 threshold https://hcservices.ecourts.gov.in/hcservices/ 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 threshold https://hcservices.ecourts.gov.in/hcservices/ limit 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. s/d- Assistant Registrar(CO) True Copy Sub-Assistant Registrar To1.The Income Tax Appellate Tribunal, Chennai 'A' Bench.2.The Commissioner of Income Tax (appeals)I, Coimbatore3.The Additional Commissioner of Income Tax Range 1, Coimbatore4.The Income Tax OfficerCompany Ward 1Coimbatore+1 CC to Mr.T.R.Senthilkumar, Advocate sr 93714.TCA.Nos.213 to 216 of 2016SSD(CO)SP(21/11/2019)