Madras High Court
The Commissioner Of Income Tax vs Shri R.Srinivasan on 16 July, 2021
T.C.A.No.370 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 16.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.370 of 2021
The Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
Shri R.Srinivasan
No.103, Ashok Nagar Main Road,
Kodambakkam,
Chennai – 600 024. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“A” Bench, dated 21.03.2019 in I.T.(SS) A.No.1/Chny/2018, Block
period 1987-88 to 1995-96 and Part of 1996-97.
For Appellant : Mr.T.Ravi Kumar,
Senior Standing Counsel
JUDGMENT
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T.C.A.No.370 of 2021
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.T.Ravi Kumar, 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 21.03.2019 made in I.T.(SS) A.No.1/Chny/2018 on the file of the
Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the
Tribunal) for the Block period 1987-88 to 1995-96 and Part of 1996-97.
3.The appellant/Revenue has raised the following substantial
questions of law in the above appeal :
“1.Whether on the facts and in the circumstances of
the case, the Tribunal was right in restricting the additions
made to the face value of the shares at Rs.100/- as against
the addition of fair market value of the shares of
M/s.Anchor Breweries Ltd. on account of valuation report
obtained during the Block Assessment Proceedings without
appreciating the fact that the shares had been obtained
without paying any adequate consideration and that too
not by way of any transaction carried out through any
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T.C.A.No.370 of 2021
recognized stock exchange?
2.Whether the reasoning and finding of the Tribunal
is proper by holding that the Assessing Officer had
travelled beyond the language employed in Sec.158BC by
considering the valuation report obtained for arriving at a
Fair Market Value in respect of shares of M/s.Anchor
Breweries Ltd as per the provisions contained in clause (b)
to sub-section (1) of Section 158BC which allows the AO
to exercise the provision of sec.142, Subsection (2) and (3)
of Section 143 and Section 144 and to make a reference to
the valuation officer with reference to seized/requisitioned
capital assets?
3.Was it proper for the Tribunal to restrict the
additions made in respect of the face value of the shares as
against the addition of Fair Market Value of M/s.Anchor
Breweries Ltd wherein in the earlier round of appeal to
High Court in para 25 of its judgment had upheld the
action of the AO in arriving at Rs.6732/- as per the value
as against the face value of Rs.100 while remanding the
issue back to the file of the AO?”
4.The learned Senior Standing Counsel for the appellant submits
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T.C.A.No.370 of 2021
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 questions of law framed are 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.]
16.07.2021
mkn
Index : Yes/No
Internet : Yes
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T.C.A.No.370 of 2021
To
The Income Tax Appellate Tribunal, Chennai, “A” Bench
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T.C.A.No.370 of 2021
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.370 of 2021
16.07.2021
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