COMMISSIONER OF INCOME TAX vs. M/S.STERLING HOLIDAYS RESORTS

T.C.A.No.653 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 11.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD T.C.A.No.653 of 2017 Commissioner of Income Tax, Chennai. ... Appellant

Versus M/s Sterling Holidays Resorts India Limited, No.7, 3rd Cross Street, Citi Tower, Kasturba Nagar, Adyar, Chennai 600 020. ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 13.07.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.1409/Mds/2015. For Appellant : Mr.J.Narayanasamy Standing Counsel For Respondent : Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.653 of 2017 JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 13.07.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.No.1409/Mds/2015, relating to the assessment year 2009-10. 2.By order dated 12.12.2017, this court admitted the aforesaid tax case appeal on the following substantial question of law: “Whether on facts and circumstances of the case and the grounds raised therein, the Tribunal was right in holding that 55% of the receipt from sale of time shares in the resorts had to be allowed as deduction on the ground that the same is to be treated as deferred income and cannot be assessed as the income of the assessee in the year of receipt?" 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, Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.653 of 2017 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. 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the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case.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.] [J.S.N.P., J.] 11.08.2022

Internet : Yes

Index : Yes / No av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.653 of 2017 2. The Commissioner of Income Tax, Chennai. R. MAHADEVAN,

and J.SATHYA NARAYANA PRASAD

, J.

av 3. The Deputy Commissioner of Income Tax, Corporate Circle 6(2), Aayakar Bhavan, New Block, 7th Floor, 121, MG Road, Chennai 600 034.