The Commissioner Of Income Tax vs M/S Lavanyaa Property Developers ...
2022 Latest Caselaw 14371 Mad

                                                                                  T.C.A.No.222 of 2014


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 11.08.2022

                                                      CORAM :

                        THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                          and
                  THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD

                                               T.C.A.No.222 of 2014


                  The Commissioner of Income Tax,
                  Company Circle - II, Trichy.                                                    ...
                  Appellant

                                                       Versus

                  M/s Lavanyaa Property Developers Pvt. Ltd.,
                  New No.31/C-8, Third Cross East,
                  Thillai Nagar, Trichy.
                  PAN: AAACL 1049D                                                ...
                  Respondent

                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order dated 16.09.2011 passed by the      Income Tax Appellate
                  Tribunal, “A” Bench, Chennai, in I.T.A.No.148/Mds/2010.


                            For Appellant         :     Mr.M.Swaminathan
                                                        Senior Standing Counsel
                                                        M/s.V.Pushpa
                                                        Junior Standing Counsel


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                                                                                         T.C.A.No.222 of 2014




                            For Respondent              :     Mr.S.Sridhar
                                                              for Mr.A.S.Sriraman


                                                         JUDGMENT

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

This tax case appeal has been filed by the appellant / Revenue,

challenging the order dated 16.09.2011 passed by the Income Tax Appellate

Tribunal, “A” Bench, Chennai, in I.T.A.No.148/Mds/2010, relating to the

assessment year 2005-06.

2.By order dated 16.07.2014, this court admitted the aforesaid tax case

appeal on the following substantial questions of law:

“(i) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the assessee is entitled for deduction under section 80-IB (10) with respect to the project Lavanya Brindavan even though one of the blocks consisted of flats measuring above 1500 sq.ft.

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(ii) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the assessee is entitled for deduction under section 80-IB(10) with respect to the sale of undivided share in the land.

(iii) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the payments made to the contractor without deducting tax at source as per section 194-C is allowable as deduction and cannot be disallowed under Section 40 (a) (ia) on the ground that the expenditure relates to deduction claimed under section 80-IB (10) and work in progress."

3.When the matter was 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 appeal 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

this appeal is less than the threshold limit.

4.In the light of the aforesaid submissions made by the learned counsel

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for the appellant / Revenue, the present appeal, wherein, the tax effect is said to

be less than the monetary limit imposed, is dismissed as withdrawn, keeping

open the substantial questions of law for determination in an appropriate case.

No costs.

                                                                   [R.M.D., J.]     [J.S.N.P., J.]
                                                                            11.08.2022

                  Internet : Yes
                  Index : Yes / No
                  av



                  To

1. The Income Tax Appellate Tribunal, “A” Bench, Chennai.

2. The Commissioner of Income Tax, Company Circle - II, Trichy.

3. The Assistant Commissioner of Income Tax, Company Circle - II, Trichy.

4. The Commissioner of Income Tax (Appeals), Tiruchirappalli.

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R. MAHADEVAN, J.

and J.SATHYA NARAYANA PRASAD, J.

av

T.C.A.No.222 of 2014

11.08.2022

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