Principal Commissioner Of Income ... vs Shri.T.S.R.Khannaiyann
2022 Latest Caselaw 13646 Mad

                                                       Tax Case Appeal Nos.562 and 564 of 2019




            IN THE HIGH COURT OF JUDICATURE AT MADRAS

                              DATED : 01.08.2022

                                    CORAM :

        THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                           AND
      THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                   Tax Case Appeal Nos.562 and 564 of 2019


Principal Commissioner of Income Tax 1
No.63, Race Course Road,
Coimbatore.
                                                              ...Appellant in both
Cases

                                      -vs-

Shri.T.S.R.Khannaiyann
67, Avaram Palayam Road,
K.R.Puram, Coimbatore - 641 018.
PAN: AFZ PK 7832 C                                 ...Respondent in both Cases

        Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961
against the common order dated 12.09.2018 passed by the Income Tax Appellate
Tribunal, Chennai “C” Bench, in I.T.A.Nos.256 and 812/Chny/2018.


             For Appellant      :     Mr.Karthick Ranganathan
                                      Senior Standing Counsel (in both cases)

             For Respondent     :     Mr. R.Sivaraman (in both cases)


1/5
                                                         Tax Case Appeal Nos.562 and 564 of 2019




                         COMMON JUDGMENT
        (Judgment of the Court was delivered by R. MAHADEVAN, J.)


      These tax case appeals have been filed by the appellant / Revenue,

challenging the common order dated 12.09.2018 passed by the Income Tax

Appellate Tribunal, 'C' Bench, Chennai, in I.T.A.Nos.256 and 812/Chny/2018,

relating to the assessment year 2007-08, by raising the following substantial

questions of law:-

              "(i) Whether on the facts and circumstances of the case and
      in law, the ITAT is correct in holding that there is a presumption
      that the Assessing Officer accepted the return already filed since
      the Notice issued under Section 143(2) of the Act was not served
      within a period of six months, especially when the assessee was
      served with reasons for reopening the assessment and had also
      co-operated during the assessment proceedings?
              (ii) Whether on the facts and circumstances of the case and
      in law, the ITAT has erred in holding that the transfer of shares
      resulted only in Long Term Capital Gains, Whereas under the
      guise of sale of shares, the assessee sold his interest in landed
      property falling within the definition of Section 2 (47)(vi) of the IT
      Act?"




2/5
                                                         Tax Case Appeal Nos.562 and 564 of 2019




      2. When the matters were taken up for consideration, the learned counsel

for the appellant / Revenue brought to the notice of this court the Circular

No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes,

wherein, it is stipulated that appeals shall not be filed/pursued by the Department

before the High Court in cases where the tax effect does not exceed

Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in

these appeals is less than the threshold limit.



      3. In the light of the aforesaid submissions made by the learned counsel for

the appellant / Revenue, the present appeals, wherein, the tax effect is said to be

less than the monetary limit imposed, are dismissed as withdrawn, keeping open

the substantial questions of law for determination in appropriate cases. No costs.




                                                    [R.M.D,J.]     [M.S.Q, J.]
                                                          01.08.2022

Internet : Yes
Index : Yes / No
av




3/5
                                                Tax Case Appeal Nos.562 and 564 of 2019




To

1. The Income Tax Appellate Tribunal,
   Chennai 'C' Bench.

2. The Principal Commissioner of Income Tax 1
   No.63, Race Course Road, Coimbatore.

3. The Assistant Commissioner of Income Tax,
   Non-Corporate Circle - 2,
   The Joint Commissioner of Income Tax,
   Range - II, Coimbatore.

4. The Income Tax Officer,
   Corporate Ward - 2,
   63-A, Race Course Road,
   Coimbatore.




4/5
                      Tax Case Appeal Nos.562 and 564 of 2019




                    R. MAHADEVAN, J.

AND MOHAMMED SHAFFIQ, J.

av

Tax Case Appeal Nos.562 and 564 of 2019

01.08.2022