THE COMMISSIONER OF INCOME T vs. SHRI.R.SRINIVASAN

T.C.A.No.370 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.07.2021 CORAM THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA T.C.A.No.370 of 2021 The Commissioner of Income Tax, Chennai. ... Appellant Vs. Shri R.Srinivasan No.103, Ashok Nagar Main Road, Kodambakkam, Chennai – 600 024. ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, “A” Bench, dated 21.03.2019 in I.T.(SS) A.No.1/Chny/2018, Block period 1987-88 to 1995-96 and Part of 1996-97. For Appellant : Mr.T.Ravi Kumar, Senior Standing Counsel JUDGMENT Page 1/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.370 of 2021 (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.T.Ravi Kumar, learned Senior Standing Counsel for the appellant/Revenue. 2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 21.03.2019 made in I.T.(SS) A.No.1/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the Tribunal) for the Block period 1987-88 to 1995-96 and Part of 1996-97. 3.The appellant/Revenue has raised the following substantial questions of law in the above appeal : “1.Whether on the facts and in the circumstances of the case, the Tribunal was right in restricting the additions made to the face value of the shares at Rs.100/- as against the addition of fair market value of the shares of M/s.Anchor Breweries Ltd. on account of valuation report obtained during the Block Assessment Proceedings without appreciating the fact that the shares had been obtained without paying any adequate consideration and that too not by way of any transaction carried out through any Page 2/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.370 of 2021 recognized stock exchange? 2.Whether the reasoning and finding of the Tribunal is proper by holding that the Assessing Officer had travelled beyond the language employed in Sec.158BC by considering the valuation report obtained for arriving at a Fair Market Value in respect of shares of M/s.Anchor Breweries Ltd as per the provisions contained in clause (b) to sub-section (1) of Section 158BC which allows the AO to exercise the provision of sec.142, Subsection (2) and (3) of Section 143 and Section 144 and to make a reference to the valuation officer with reference to seized/requisitioned capital assets? 3.Was it proper for the Tribunal to restrict the additions made in respect of the face value of the shares as against the addition of Fair Market Value of M/s.Anchor Breweries Ltd wherein in the earlier round of appeal to High Court in para 25 of its judgment had upheld the action of the AO in arriving at Rs.6732/- as per the value as against the face value of Rs.100 while remanding the issue back to the file of the AO?” 4.The learned Senior Standing Counsel for the appellant submits Page 3/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.370 of 2021 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 as withdrawn on account of the Low Tax Effect. The substantial questions of law framed are left open. In the event the tax effect in this case 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. No costs. [M.D., J.] [R.H., J.] 16.07.2021 mkn

Index : Yes/No Internet : Yes

Page 4/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.370 of 2021 To The Income Tax Appellate Tribunal, Chennai, “A” Bench Page 5/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.370 of 2021 M.DURAISWAMY, J. and R. HEMALATHA, J. mkn T.C.A.No.370 of 2021 16.07.2021 Page 6/6 https://www.mhc.tn.gov.in/judis/