The Commissioner Of Income Tax vs Shri P. Mohanraj
2022 Latest Caselaw 14707 Mad

                                                                                         TCA.No.217 of 2014


                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED : 22.08.2022

                                                        CORAM

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

                                                 T.C.A.No. 217 of 2014

                The Commissioner of Income Tax,
                Salem                                                               ..      Appellant
                                                        Versus

                Shri P. Mohanraj,
                5/83, Teachers Colony,
                Mohanur Road,
                Namakkal                                                             .. Respondent

                          Tax Case Appeal filed under Section 260-A of the Income Tax Act,
                1961 against the order of the Income Tax Appellate Tribunal Madras “C”
                Bench, dated 21.03.2013 passed in IT(S.S.)A No.53/mds/2007 in respect of
                Block Assessment Period 01.04.1996 to 14.11.2002.


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




                1/4

https://www.mhc.tn.gov.in/judis
                                                                                               TCA.No.217 of 2014




                                                         JUDGMENT

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

This Tax Case Appeal has been filed by the appellant / revenue,

questioning the correctness of the order dated 21.03.2013 passed by the

Income Tax Appellate Tribunal Madras “C” Bench in IT(S.S.)A

No.53/mds/2007 for the Block Assessment Period 01.04.1996 to 14.11.2002.

2. On 14.07.2014, this tax case appeal is admitted by this Court on the

following substantial questions of law;

' In a specific case of department that the loan credit extended by Sri Loganathan, Sri. P. Muthuswamy and M/s.PMT Transport are only name lenders and not a regular credit whether the Income Tax Appellate Tribunal was justified in accepting the assessee's plea that the said amount should be assessed only in the hands of the loan creditors and not that of the assessee?

2. Whether the Income Tax Appellate Tribunal was right in discharging the assessee from the liability to tax, merely on the statement recorded under section 132(4) of the Income Tax Act without supporting and corroborated statement?”

https://www.mhc.tn.gov.in/judis TCA.No.217 of 2014

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 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

this appeal is less than the threshold limit.

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

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.]       [M.S.Q., J.]
                                                                           22.08.2022
                msr

                Index        : Yes / No

https://www.mhc.tn.gov.in/judis TCA.No.217 of 2014

R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

msr

To

1. The Deputy Commissioner of Income Tax, Central Circle, Salem.

2. The Commissioner of Income Tax (Appeals), Salem-7.

3. The Income Tax Appellate Tribunal Madras “C” Bench, Chennai,

T.C.A.No. 217 of 2014

22.08.2022

https://www.mhc.tn.gov.in/judis