Commissioner Of Income Tax vs M/S.Smart Professional Services ...
2021 Latest Caselaw 13209 Mad

                                                                                  T.C.A.No.989 of 2015

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      Dated: 05.07.2021

                                                          CORAM

                                    THE HON'BLE MR.JUSTICE M. DURAISWAMY
                                                     AND
                                    THE HON'BLE MRS.JUSTICE R. HEMALATHA

                                             Tax Case Appeal No.989 of 2015


                     Commissioner of Income Tax
                     Chennai.                                                        ... Appellant

                                                            Vs.

                     M/s.Smart Professional Services (P) Ltd.,
                     T-11, K.G.Plaza, 3rd Floor,
                     No.41-44, General Patters Road,
                     Chennai 600 002.                                          ...Respondent

                     PRAYER: Tax Case Appeal filed under Section 260A of the Income

                     Tax Act, 1961 against the order of the Income Tax Appellate Tribunal,

                     Chennai           "C"    Bench,       dated     11.03.2015       passed         in

                     I.T.A.No.2484/Mds/2014 for the assessment year 2011-2012.



                                      For Appellant       : Mr. J.Narayanasamy
                                                           Senior Standing Counsel
                                                          JUDGMENT

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(Judgment of the Court was delivered by M. DURAISWAMY, J.) We have heard Mr.J.Narayanasamy, learned Senior Standing

Counsel for the appellant/Revenue.

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 11.03.2015 made in I.T.A.No.2484/Mds/2014 on the file of the

Income Tax Appellate Tribunal, Chennai, "C" Bench (for brevity, the

Tribunal) for the Assessment Year 2011-2012.

3. The appeal was admitted on the following substantial question

of law:-

“Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the profits earned by the assessee from the sale of the shares of 2 companies, viz., M/s.Sriram Transport Finance Company Ltd., and M/s.Oriental Green Power Ltd., is to be treated as income from business and not as income from short term capital gains."

4. The learned Senior Standing Counsel appearing for the

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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

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.]   [R.H., J.]
                     Index : Yes/No                                           05.07.2021
                     Internet : Yes
                     gv




                     Page 3/4

https://www.mhc.tn.gov.in/judis/ T.C.A.No.989 of 2015

M. DURAISWAMY, J.

and R.HEMALATHA,J

gv

To The Income Tax Appellate Tribunal, Chennai,"C" Bench

Tax Case Appeal No.989 of 2015

05.07.2021

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