The Commissioner of Income Tax vs. A.R.Foundations

TCA.No.211 of 2020 In the High Court of Judicature at Madras Dated : 05.08.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.211 of 2020 The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.A.R.Foundations Acropolis, Ground Floor, No.148, Dr.Radhakrishnan Salai, Mylapore, Chennai 600 004 PAN:AASFA0033B ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 29.08.2018 made in ITA.No.924/chny/2018 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year 2014-15. For Appellant: Ms.R.Hemalatha, Senior Standing Counsel Respondent: Mr.A.S.Sriraman 1/4 http://www.judis.nic.in TCA.No.211 of 2020 Judgment was delivered by

T.S.Sivagnanam,J

We have heard Ms.R.Hemalatha, learned Senior Standing Counsel appearing for the appellant – Revenue. 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 29.08.2018 made in ITA.No. 924/chny/2018 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year 2014-15. 3. The appeal is admitted on the following substantial questions of law: “1.Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the lease rental income for the usage of the property as well as that of the amenities thereupon is to be treated as business income only? 2/4 http://www.judis.nic.in TCA.No.211 of 2020 2. Whether the Tribunal ought to have applied the decision of the Apex Court in the case of Sambu Investments P Ltd reported in 263 ITR page 143 wherein it was held that the income derived from letter out of the building was to be assessed under the head ''income from house property and not under the head business income.” 4. The learned Senior Standing Counsel 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 08.8.2019 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. 3/4 http://www.judis.nic.in TCA.No.211 of 2020 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J sk 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 make a mention to this Court to restore the appeal to be heard and decided on merits. (T.S.S., J.) (V.B.S., J.)

05.08.2020 Internet: Yes /No Index : Yes/No To The Income Tax Appellate Tribunal, Chennai 'B' Bench. TCA.No.211 of 2020 4/4 http://www.judis.nic.in