Principal Commissioner Of Income Tax vs. Muruganand Swarnamala

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TCA/63/2024HC Madras15 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal on the ground that the matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024. The Court explicitly stated that the substantial question of law arising in this appeal is kept open to be decided at a later point of time. Therefore, no finding was rendered on the merits of the substantial question of law concerning the taxation of capital gains. The operative direction was to dismiss the appeal, with no order as to costs.

What were the facts?

The appeal is filed by the Principal Commissioner of Income Tax, International Taxation Ward, Coimbatore (Revenue) against the order of the Income Tax Appellate Tribunal, Madras Bench, Chennai, dated 31.07.2023, passed in I.T.A.No.82/CHNY/2023. The assessee is Muruganand Swarnamala. The appeal was admitted by the High Court on 22.03.2024 on substantial questions of law. The Revenue, through its learned Senior Standing Counsel, submitted that the matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024.

What were the issues?

1. Whether or not the Tribunal was right in not considering the basis aspect of taxation for capital gains, which is that it has to be paid in the year of transfer even though the actual consideration is received at a later point of time, as contemplated in Sections 45 and 48 of the Income Tax Act, 1961? (Question of law). Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The matter is covered under the Low Tax Effect as per Circular No. 9/2024 dated 17.09.2024.

Which sections of the Income-tax Act were involved?

Section 45,Section 48,Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.No.63 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.10.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.No.63 of 2024 Principal Commissioner of Income Tax International Taxation Ward Coimbatore. .. Appellant Vs. Muruganand Swarnamala 48, West Ponnurangam Road R.S.Puram, Coimbatore – 641 002 PAN: AGVPS 9513 R. .. Respondent Prayer: Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of Income Tax Appellate Tribunal, Madras “C”

Bench,

Chennai

dated

31.07.2023

passed

in I.T.A.No.82/CHNY/2023. For the Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For the Respondent : Mr.A.S.Sivaraman JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 22.03.2024 by this Court on the following substantial questions of law:- Page 1 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.63 of 2024 "1. Whether or not the Tribunal was right in not considering the basis aspect of taxation for capital gains is that it has to be paid in the year of transfer even though the actual consideration is received at a later point of time as contemplative in Sections 45 and 48 of Income Tax Act, 1961?" 2. It is submitted by the learned Senior Standing Counsel appearing for the appellant Revenue that this matter is covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. 3. Hence, this appeal stands dismissed, as covered under the low tax effect and the substantial question of law arising in this appeal is kept open to be decided at the later point of time. There shall be no order as to costs. (R.S.K., J.) (C.S.N, J) 15.10.2024 Neutral Citation:Yes/No drm Page 2 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.63 of 2024 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.63 of 2024 15.10.2024 Page 3 of 3 https://www.mhc.tn.gov.in/judis

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