Madras High Court
Commissioner Of Income Tax vs Shri A Jahabar Ali on 24 February, 2021
T.C.A.No. 286 of 2011
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 24.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No. 286 of 2011
Commissioner of Income Tax,
Chennai ... Appellant
v.
Shri A Jahabar Ali ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
"D" Bench, dated 13.10.2010 in I.T.A.No.1585/Mds/2009 for the
Assessment Year 2005-06.
For Appellant : Mr. Karthik Ranganathan
Standing Counsel
For Respondent : Mr. Asokapathy
for M/s. Pass Asso.
Page 1/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No. 286 of 2011
JUDGMENT
(Judgment was delivered by M. DURAISWAMY, J.)
We have heard Mr. Karthik Ranganathan, learned Standing
Counsel for the appellant/Revenue and Mr.Asokapathy for the
respondent/Assessee.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 13.10.2010 made in I.T.A.No.1585/Mds/2009 on the file of the
Income Tax Appellate Tribunal, Chennai, ''D'' Bench (for brevity, the
Tribunal) for the Assessment Year 2005-06.
3.The appeal was admitted on 13.11.2009 on the following
substantial question of law:
“(i) Whether on the facts and circumstances of
the case, the Tribunal was right in holding that the
assessee had held the shares as investment and in
concluding that the income from share transaction
Page 2/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No. 286 of 2011
had to be assessed as short term capital gains and
not on business income?
(ii) Whether on the facts and circumstances of
the case, the Tribunal was right in considering the
issue relating to treatment of income from share
transaction even though the issue was never
considered by the Commissioner (Appeals) and did
not arise out of the order of the Commissioner
(Appeals)?”
4.The learned Standing Counsel appearing for the appellant
submits that the above appeal is not pursued by the Revenue on account
of the Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019
issued by the Central Board of Direct Taxes. By the said Circular, the
monetary limit for filing or pursuing an appeal before the High Court has
been increased to Rs.1 crore. It is further submitted that the tax effect in
this case is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal
is dismissed as withdrawn on account of the Low Tax Effect. The
Page 3/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No. 286 of 2011
substantial question of law framed is left open. In the event the tax
effect in this case is above the threshold limit fixed in the said Circular,
liberty is granted to the Revenue to make a mention to this Court to
restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [T.V.T.S., J.]
24.02.2021
Index : Yes/No
Internet : Yes
Rj
To
The Income Tax Appellate Tribunal,
Chennai, ''D'' Bench
Page 4/5
https://www.mhc.tn.gov.in/judis/
T.C.A.No. 286 of 2011
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
Rj
T.C.A.No. 286 of 2011
24.02.2021
Page 5/5
https://www.mhc.tn.gov.in/judis/
