Principal Commissioner Of Income Tax vs M/S.Kwality Spinning Mills Ltd
2024 Latest Caselaw 20021 Mad

Madras High Court

Principal Commissioner Of Income Tax vs M/S.Kwality Spinning Mills Ltd on 23 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                   T.C.A.No.662 of 2017

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 23.10.2024

                                                        CORAM

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

                                           Tax Case Appeal No.662 of 2017


                   Principal Commissioner of Income Tax
                   No.63, Race Course Road, Coimbatore.                          ....     Appellant

                                                           Vs.

                   M/s.Kwality Spinning Mills Ltd
                   Udumalpet Road, Pollachi.                                     ....     Respondent
                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, 'B' Bench Chennai,
                   dated 29/03/2017 in ITA.No.1837/Mds/2016.


                                   For Appellant       : Mr.Karthik Ranganathan
                                                         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:

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1. Whether the ITAT was right in not considering the provisions of Section 2(47) of the Income Tax Act 1961 according to which, once the assessee admits of having received the entire consideration and handed over the property documents in the Financial Year 2008-09 itself, the doctrine as per Section 53A of the Transfer of Property Act comes into play and it is a deemed transfer and capital gains is assessable that year itself?

2. Whether the ITAT was right in directing the AO to allow Rs.3,00,000/- towards cost of improvement on an estimate basis, when the assessee has not substituted any evidence in support of its claim?

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.

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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.)
                                                                         23.10.2024
                   NCS : Yes/No
                   KST

                   To

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

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R.SURESH KUMAR, J.

AND C.SARAVANAN, J.

KST

23.10.2024

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