The Principal Commissioner Of Income ... vs Smt.Amudha Sukumar
2024 Latest Caselaw 20862 Mad

Madras High Court

The Principal Commissioner Of Income ... vs Smt.Amudha Sukumar on 19 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                   T.C.A.No.297 of 2022

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 19.10.2024

                                                        CORAM

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

                                           Tax Case Appeal No.297 of 2022

                   The Principal Commissioner of Income Tax-I
                   Chennai.                                               ....     Appellant

                                                           Vs.

                   Smt.Amudha Sukumar                                     ....     Respondent


                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench,
                   Chennai, dated 12.04.2022 made in I.T.A.No.883 of 2016.


                                   For Appellant       : Mr.T.Ravikumar
                                                         Senior Standing Counsel

                                   For Respondent      : Mr.Suhrith Parthasarathy
                                                          -----

                                                    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

"(i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the excess amount of Rs.7 Crores received by the Assessee from KGS Developers Ltd as compensation was liable to be taxed as long term capital gains in the hands of the Assessee even though there was no transfer of any capital assets?

(ii) Is not reasoning and finding of the Tribunal bad since the excess amount of Rs.7 Crores earned by the Assessee was due to the forfeiture clause in the agreement which has resulted in earning income from other sources only and being a revenue receipt has to be assessed under the said head?

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.

3. It is further submitted by the learned Standing Counsel that to an e-

mail communication dated 04.10.2024 requesting instructions as to whether

this case is covered under low tax effect, the reply given by the Revenue is in

the affirmative. Therefore, based on such instructions from the Revenue, the

learned Standing Counsel submits that this appeal can be disposed of.

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

4. 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.)
                                                                         19.10.2024
                   NCS : Yes/No
                   Index : Yes/No
                   KST

                   To

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




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




                                  R.SURESH KUMAR, J.
                                               AND
                                     C.SARAVANAN, J.


                                                     KST









                                            19.10.2024




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