COMMISSIONER OF INDIA vs. M/S.TAMILNADU REAL ESTATE

TCA/516/2018HC Madras10 July 2025Bench: Honourable The CHIEF JUSTICE4 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeals must be dismissed as withdrawn. The reasoning was based on Circular No.5 of 2019, dated 05.02.2019, which extended the monetary limits previously set by Circular No.3 of 2018 (dated 11.07.2018) to wealth tax appeals. Since this circular had not been superseded, and the present appeals were below the stipulated tax effect, they were deemed not maintainable for further adjudication on merits. The ratio decidendi is that appeals filed by tax authorities that do not meet the prescribed monetary limits, as per binding circulars, are to be dismissed as withdrawn. The operative direction was the dismissal of the appeals. No issue was expressly left undecided.

What were the facts?

The appeals were filed by the Commissioner of Income Tax, Corporate Circle 3(1), Chennai, against M/s. Tamil Nadu Real Estate Private Limited. The appeals challenged common orders dated 29.08.2017 passed by the Income Tax Appellate Tribunal ('D' Bench, Chennai) in WTA Nos.23 to 25/Mds/2017. These appeals pertain to wealth tax matters. The Court noted Circular No.5 of 2019, issued on 05.02.2019, which extended the monetary limits prescribed in Circular No.3 of 2018 (dated 11.07.2018) to wealth tax appeals. The Court was informed that the present appeals were below the tax effect as per this circular.

What were the issues?

1. Whether the appeals are maintainable given the monetary limits prescribed by Circular No.5 of 2019, which extended the limits of Circular No.3 of 2018 to wealth tax appeals? Assessee's Contention: The assessee, through their counsel Ms. Pushpa (though the judgment names Ms. Vardini Karthik for the respondent, it refers to Ms. Pushpa's submission regarding the circular), argued that the appeals must be dismissed as withdrawn because they fall below the tax effect stipulated by the relevant circulars. The circulars, specifically Circular No.5 of 2019 and Circular No.3 of 2018, set monetary thresholds for filing appeals, and these appeals did not meet those thresholds. Revenue's Contention: The judgment does not explicitly record separate contentions from the revenue regarding the merits of the case. The revenue's participation is implied by their status as the appellant. The court's decision hinges on the application of the circulars to the tax effect of the appeals.

Which sections of the Income-tax Act were involved?

27A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.516 to 518 of 2018

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 10.07.2025 CORAM : THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE SUNDER MOHAN T.C.A.Nos.516 to 518 of 2018 Commissioner of Income Tax Corporate Circle 3(1) Appellant in Chennai. .. all TCAs. Vs. M/s. Tamil Nadu Real Estate Private Limited No.123/124, Nungambakkam High Road Isphani Centre Chennai 600 034. Respondent in PAN: AABCT5912E .. all TCAs. Prayer : Appeals under Section 27A of the Wealth Tax Act, 1961 against the common order dated 29.08.2017 passed in WTA Nos.23 to 25/Mds/2017 on the file of the Income Tax Appellate Tribunal 'D' Bench, Chennai. For Appellant : Mr.J.Narayanasamy For Respondent : Mrs.G.Vardini Karthik __________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/07/2025 04:27:38 pm ) T.C.A.Nos.516 to 518 of 2018

JUDGMENT (Judgment of the Court was delivered by the Hon'ble Chief Justice) All these appeals relate to wealth tax. 2. Circular No.5 of 2019 issued on 05.02.2019 provides that the Circular will come into effect from the date of issuance of the Circular. By the said Circular, the monetary limit prescribed in Circular No.3 of 2018 dated 11.07.2018 was extended to wealth tax appeals also. Since this Circular has not been superseded by any other Circular, we would agree with Ms.Pushpa that the present appeals must be dismissed as withdrawn being below the tax effect. 3. Appeals are dismissed as withdrawn. There shall be no order as to costs. (K.R.SHRIRAM, CJ) (SUNDER MOHAN,J.)

10.07.2025 Index : Yes/No Neutral Citation : Yes/No __________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/07/2025 04:27:38 pm ) T.C.A.Nos.516 to 518 of 2018

kpl To 1. The Assistant Registrar Income Tax Appellate Tribunal Chennai Benches, Chennai. 2. The Commissioner of Wealth Tax (Appeals) -11 Chennai.

The Assistant Commissioner of Wealth Tax Corporate Circle 3(1) Chennai. __________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/07/2025 04:27:38 pm ) T.C.A.Nos.516 to 518 of 2018

THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN

,J.

(kpl)

T.C.A.Nos.516 to 518 of 2018

10.07.2025 __________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 14/07/2025 04:27:38 pm )

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