The Principal Commissioner of Income Tax 1 vs. Dr. Hisamuddin Papa

TCA/152/2024HC Madras19 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Tax Case Appeal filed by the Revenue. The dismissal was based on the ground of low tax effect, as per CBDT's Circular No.9 of 2024 dated September 17, 2024. The Court noted that the tax effect in the instant case was below the monetary limit stipulated for filing appeals. Consequently, the Court decided to dispose of the appeal without adjudicating the substantial questions of law raised. The substantial questions of law were kept open for adjudication at an appropriate stage. No costs were imposed. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax-I, Chennai, filed a Tax Case Appeal before the High Court of Judicature at Madras. The appeal challenges an order passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, dated March 29, 2023, in ITA No.787/Chny/2022. The dispute concerns the assessee's claim that a particular land was agricultural, despite the assessee allegedly failing to produce evidence of agricultural operations or disclose agricultural income in their returns. The land was reportedly sold to a developer for a residential housing project. The appeal was filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

The Tribunal had to decide two substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing the assessee's claim that the land was agricultural, even though the assessee failed to produce evidence of agricultural operations and did not disclose agricultural income in the returns filed? This question turns on the interpretation and application of provisions related to agricultural income and its exemption. 2. Is the reasoning and finding of the Tribunal flawed, especially considering that no agricultural operations were conducted by the assessee and the land was sold to a developer for construction of a residential housing project? This question examines the factual basis and legal reasoning of the Tribunal's decision in light of the land's subsequent use. The Revenue contended that the assessee failed to produce evidence of agricultural operations and disclose agricultural income. The Revenue also argued that the land was sold for development, implying it was not agricultural. The judgment does not record specific arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.152 of 2024 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.152 of 2024 The Principal Commissioner of Income Tax-I Chennai. .... Appellant Vs. Dr.Hisamuddin Papa .... 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 29.03.2023 made in I.T.A.No.787/Chny/2022. For Appellant : Mr.T.Ravikumar Senior Standing Counsel ----- J U D G M E N T (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 T.C.A.No.152 of 2024 "(i) Whether on the facts and in the circumstances of the case the Tribunal was justified in allowing the claim of the Assessee that it was an agricultural land even though the assessee failed to produce evidences to show that he had performed agricultural operations on the land and no agricultural income was disclosed in the returns filed? (ii) Is not the reasoning and finding of the Tribunal bad especially when no agricultural operations were done by the assessee and the land in question was sold to a Developer who sold the same to the third parties for construction of a residential housing project? 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 https://www.mhc.tn.gov.in/judis T.C.A.No.152 of 2024 the affirmative. Therefore, based on such instructions from the Revenue, the learned Standing Counsel submits that this appeal can be disposed of. 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 'A' Bench, Chennai. https://www.mhc.tn.gov.in/judis T.C.A.No.152 of 2024 R.SURESH KUMAR, J. AND C.SARAVANAN, J. KST T.C.A.No.152 of 2024 19.10.2024 https://www.mhc.tn.gov.in/judis

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