THE COMMISSIONER OF INCOME T vs. L.SARAVANAN

T.C.A.No.406 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 25.07.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.406 of 2021 The Commissioner of Income Tax, Chennai. ... Appellant

Versus Dr.L.Saravanan

... Respondent

Appeal preferred under Section 260A of the Income Tax Act, 1961, against the common order dated 29.10.2018 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.1622/Chny/2018. For Appellant : Mr.T.Ravikumar Senior Standing Counsel For Respondent : Mr.S.Sridhar Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.406 of 2021 JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the common order dated 29.10.2018 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.1622/Chny/2018, relating to the assessment year 2013-14. 2.By order dated 28.07.2021, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the additions made under section 2(22)(e) of the Income Tax Act especially when the decision of the Madras High Court in the case of T.K.Abubucker reported in 259 ITR Page 507 clearly held that the even advance to shareholders for building construction purposes which are later taken on loan by the Company and such advances are to be set off against future rent, still was held to be deemed dividend and the same was taxable under the Income Tax Act? Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.406 of 2021 (ii) Whether on the fact and in the circumstances of the case, the Tribunal was right in law in deleting the additions made Section 69/69A of the Income Tax Act by the CIT (Appeals) in respect of powers conferred on him under section 251(1) for enhancement of income/assessment? (iii) Whether the Tribunal ought to have applied the decision of the Apex Court in the case of Kanpura Coal Syndicate Case reported in 53 ITR 225 (SC) wherein it was held by the Three Judge Bench the powers of the CIT (Appeals) are coterminous with the power of the assessing officer?" 3.When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeal shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.406 of 2021 4.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 25.07.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai. 2. The Commissioner of Income Tax, Chennai.