PRINCIPAL COMMISSIONER OF IN vs. T.S.R.KHANNAIYANN

Tax Case Appeal Nos.562 and 564 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal Nos.562 and 564 of 2019 Principal Commissioner of Income Tax 1 No.63, Race Course Road, Coimbatore. ...Appellant in both Cases -vs- Shri.T.S.R.Khannaiyann 67, Avaram Palayam Road, K.R.Puram, Coimbatore - 641 018. PAN: AFZ PK 7832 C ...Respondent in both Cases Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the common order dated 12.09.2018 passed by the Income Tax Appellate Tribunal, Chennai “C” Bench, in I.T.A.Nos.256 and 812/Chny/2018. For Appellant : Mr.Karthick Ranganathan Senior Standing Counsel (in both cases) For Respondent : Mr. R.Sivaraman (in both cases)

1/5 Tax Case Appeal Nos.562 and 564 of 2019 COMMON JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) These tax case appeals have been filed by the appellant / Revenue, challenging the common order dated 12.09.2018 passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai, in I.T.A.Nos.256 and 812/Chny/2018, relating to the assessment year 2007-08, by raising the following substantial questions of law:- "(i) Whether on the facts and circumstances of the case and in law, the ITAT is correct in holding that there is a presumption that the Assessing Officer accepted the return already filed since the Notice issued under Section 143(2) of the Act was not served within a period of six months, especially when the assessee was served with reasons for reopening the assessment and had also co-operated during the assessment proceedings? (ii) Whether on the facts and circumstances of the case and in law, the ITAT has erred in holding that the transfer of shares resulted only in Long Term Capital Gains, Whereas under the guise of sale of shares, the assessee sold his interest in landed property falling within the definition of Section 2 (47)(vi) of the IT Act?" 2/5 Tax Case Appeal Nos.562 and 564 of 2019 2. When the matters were 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 appeals 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 these appeals is less than the threshold limit. 3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. [R.M.D,J.] [M.S.Q, J.] 01.08.2022

Internet : Yes

Index : Yes / No av 3/5 Tax Case Appeal Nos.562 and 564 of 2019 To 1. The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2. The Principal Commissioner of Income Tax 1 No.63, Race Course Road, Coimbatore. 3. The Assistant Commissioner of Income Tax, Non-Corporate Circle - 2, The Joint Commissioner of Income Tax, Range - II, Coimbatore. 4. The Income Tax Officer, Corporate Ward - 2, 63-A, Race Course Road, Coimbatore. 4/5 Tax Case Appeal Nos.562 and 564 of 2019 R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. av Tax Case Appeal Nos.562 and 564 of 2019 01.08.2022 5/5