Commissioner Of Income Tax vs M/S.Master Developers
2024 Latest Caselaw 19785 Mad

Madras High Court

Commissioner Of Income Tax vs M/S.Master Developers on 21 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                    T.C.A.No.170 of 2024

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 21.10.2024

                                                        CORAM

                                    THE HON'BLE MR.JUSTICE R.SURESH KUMAR
                                                     AND
                                     THE HON'BLE MR.JUSTICE C.SARAVANAN

                                           Tax Case Appeal No.170 of 2024


                   Commissioner of Income Tax
                   Chennai.                                               ....     Appellant

                                                           Vs.

                   M/s.Master Developers
                   123, Mint Street, Sowcarpet
                   Chennai 600 079.
                   (PAN AARFM5470B)                                ....   Respondent
                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, 'A' Bench Chennai,
                   dated 22.02.2023 made in I.T.A.No.873/Chny/2020.


                                   For Appellant       : Mr.J.Narayanaswamy
                                                         Senior Standing Counsel

                                                          -----

                                                    JUDGMENT

(Delivered by R.SURESH KUMAR, J.)

This Tax Case Appeal has been filed by the Revenue calling in question

the correctness of the order passed by the Income Tax Appellate Tribunal,

Chennai by raising the following substantial questions of law:

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

1. Whether on the facts and in the circumstances of the

case the Tribunal was right in holding that the gains

earned by the assessee from the sale of property

after converting the land into plots by spending on

improvement to land in the course of assessee real

estate business is not a business income of the

assessee and the said income is to be treated income

from capital gains?

2. Whether on the facts and in the circumstances of the

case, the tribunal was right in allowing the assessee's

claim for cost on improving the land?

2. It is brought to our notice by the learned Standing Counsel for the

appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of

2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit

imposed and therefore, the appeal can be disposed of, keeping the substantial

questions of law raised in this appeal open for adjudication at a later point of

time.

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

3. Recording the aforesaid submission made by the learned Standing

Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low

tax effect, keeping open the substantial questions of law for adjudication at

appropriate stage. No costs.

                                                                   (R.S.K.,J.)    (C.S.N.,J.)
                                                                         21.10.2024
                   NCS : Yes/No
                   KST

                   To

The Income Tax Appellate Tribunal 'A' Bench, Chennai.

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

R.SURESH KUMAR, J.

AND C.SARAVANAN, J.

KST

21.10.2024

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