COMMISSIONER OF INCOME TAX vs. DR.PRATHIMA VENKATACHALAM

TCA.No.139 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.02.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.139 of 2021 Commissioner of Income Tax, International Taxation 2(1), Chennai - 600 034. ...Appellant Vs Dr.Prathima Venkatachalam ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 09.03.2017 made in ITA.No.2612/Mds/2016 on the file of the Income Tax Appellate Tribunal, 'C' Bench, Chennai for the assessment year 2009-10. For Appellant: Mr.R.Karthik Ranganathan Senior Standing Counsel For Respondent: Mr.Venkata Narayanan for M/s.Subbaraya Aiyar Padmanabhan 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.139 of 2021 JUDGMENT (Delivered by

T.S.Sivagnanam,J

) This appeal, filed by the Revenue, is directed against the order dated 09.03.2017 made in ITA.No.2612/Mds/2016 on the file of the Income Tax Appellate Tribunal, 'C' Bench, Chennai (for brevity, the Tribunal) for the assessment year 2009-10. 2. The appellant-Revenue has raised the following substantial question of law for consideration: "Whether on the facts and in the circumstances of the case, the ITAT was right in allowing the deduction claimed u/s 54 of Act, when the unutilized portion of net sale consideration of capital gains has not been deposited in the capital gains scheme account within the due date for filing of return of income u/s 139(1) of the Income Tax Act, 1961, in terms of Sec. 54(2) of the Act?" 3. We have heard Mr.Karthik Ranganathan, learned Senior Standing Counsel for the Revenue and Mr.Venkata Narayanan, learned counsel appearing for the respondent. 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.139 of 2021 4. The learned Senior Standing Counsel appearing for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S.,J.) (R.N.M.,J.) 15.02.2021 Index: Yes/No Internet:Yes/No Speaking Judgment/Non speaking Judgment hvk 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.139 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk To 1. The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2. Commissioner of Income Tax, International Taxation 2(1), Chennai - 600 034. TCA.No.139 of 2021 15.02.2021 4/4 https://www.mhc.tn.gov.in/judis/