PRINCIPAL COMMISSIONER OF IN vs. M/S.GANAM HOMES AND ESTATES

T.C.A.No.46 of 2020 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.03.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA T.C.A.No.46 of 2020 Principal Commissioner of Income Tax Central 2, No.108, Mahatma Gandhi Road, Chennai-600 034. .. Appellant

-vs- M/s.Ganam Homes & Estates Pvt. Ltd., No.1379, “Golden Villa”, 1st Block, 6th Street, 18th Main Road, Vallalar Kudiyeruppu, Anna Nagar West, Chennai-600 040. PAN: AAD CG 5334 P .. Respondent Appeal under Section 260A of the Income Tax Act, 1961 against the order dated 08.03.2019 made in I.T.A.No.1649/Chny/2018 on the file of the Income Tax Appellate Tribunal 'B' Bench, Chennai for the assessment year 2014-15. For Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel assisted by 1/4 T.C.A.No.46 of 2020 Ms.K.G.Usha Rani, Junior Standing Counsel For Respondent : Mr.R.Murali ******* JUDGMENT (Judgment of the Court was delivered by T.S.Sivagnanam, J.) This appeal, by the appellant/Revenue filed under Section 260A of the Income Tax Act, 1961, is directed against the order dated 08.03.2019, in I.T.A.No.1649/Chny/2018 passed by the Income Tax Appellate Tribunal 'B' Bench, Chennai for the assessment year 2014-15. 2.The appeal was admitted, on 30.01.2020, on the following substantial questions of law:- “(i) Whether on the facts and in the circumstances of the case, the ITAT's conclusion that the CIT(A) has rightly directed the Assessing Officer to delete the liability of Rs.1,50,30,000/- was correct in spite of the fact that the assessee has not proved the identity, genuineness and creditworthiness of the persons purported to have given land advances, even during the appellate proceedings? and (ii) Whether on the facts and in the circumstances of the case, the ITAT, being the highest fact finding authority, 2/4 T.C.A.No.46 of 2020 was correct in law, in confirming the CIT(A)'s order, without adjudicating the grounds 2.1, 2.2 and 2.3 raised by the Department?”

4.The learned Senior Standing Counsel for the appellant/Revenue 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 questions of law framed are 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. No costs. (T.S.S., J.) (R.N.M., J.) 22.03.2021 abr 3/4 T.C.A.No.46 of 2020 T.S.Sivagnanam, J. and R.N.Manjula, J. (abr) To The Income Tax Appellate Tribunal 'B' Bench, Chennai. T.C.A.No.46 of 2020 22.03.2021 4/4