Principal Commissioner Of Income ... vs S.P.Nandakumar
2022 Latest Caselaw 9912 Mad

                                                                                 T.C.A.No.578 of 2017

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED : 13.06.2022

                                                        CORAM :

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

                                                   T.C.A.No.578 of 2017


                  Principal Commissioner of Income Tax 2,
                  No.121, Mahatma Gandhi Road,
                  Chennai 600 034.                                                 ... Appellant

                                                         Versus

                  S.P.Nandakumar                                                  ...
                  Respondent


                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order of the Income Tax Appellate Tribunal, Chennai, “C” Bench,
                  dated 23.06.2016 in I.TA.No.2137/Mds/2015.


                                   For Appellant            :     Mr.Karthik Ranganathan
                                                                  Standing Counsel

                                   For Respondent           :     Mr.S.Sridhar




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                                                                                  T.C.A.No.578 of 2017




                                                  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 23.06.2016 passed by the Income Tax Appellate

Tribunal, 'C' Bench, Chennai, in I.T.A.No.2137/Mds/2015, relating to the

assessment year 2011-12.

2. By order dated 07.12.2017, this court admitted the aforesaid tax

case appeal on the following substantial questions of law:

“(i) Whether the Appellate Tribunal was right in holding that land, on which, the tea factory with its machinery is located and let out to a partnership firm for doing business can be treated as agricultural land and claimed exempt under Section 2(14)(iii)(a)(b) of the Income Tax Act? and

(ii) Whether the Appellate Tribunal was right in holding the land as agricultural land, when Rule 8 of the Income Tax Rules provided for treating the income from sale of tea grown and manufactured by seller as business income?"

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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

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 question of law for determination in an

appropriate case. No costs.

                                                                    (R.M.D., J.)     (M.S.Q., J.)
                                                                              13.06.2022


                  Internet : Yes
                  Index : Yes / No
                  psa/av

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https://www.mhc.tn.gov.in/judis T.C.A.No.578 of 2017

R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

psa/av

To

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

2. Principal Commissioner of Income Tax 2, No.121, Mahatma Gandhi Road, Chennai 600 034.

3. The Assistant Commissioner of Income Tax Business Ward XIV(4), Chennai.

4. The Commissioner of Income-tax (Appeals) - 7, Chennai.

T.C.A.No.578 of 2017

13.06.2022

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