Principal Commissioner of In vs. Shri. Sreedharan Vijayakumar

Tax Case Appeal No.77 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.03.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD Tax Case Appeal No.77 of 2022 Principal Commissioner of Income Tax 2 No.121, Mahatma Gandhi Road, Chennai 600 034. ...Appellant -vs- Sreedharan Vijayakumar New No.46, Old No.23, United India Colony, Circular Road, Kodambakkam, Chennai 600 024. PAN:APNPV3619N ...Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 07.02.2018 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai in I.T.A.No.1799/MDS/2017. For Appellant : Mr.Karthik Ranganathan

1/4 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.77 of 2022 J U D G M E N T (Judgment of the court was delivered by R. MAHADEVAN, J.) This tax case appeal at the instance of the appellant / Revenue, is directed against order dated 07.02.2018 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.1799/MDS/2017, relating to the assessment year 2014-2015, by raising the following substantial questions of law:- “(i)Whether on the facts and in the circumstances of the case, the assessee's claim of deduction under Section 54F is allowable when the unutilized portion of net consideration of capital gains has not been deposited in the capital gains scheme within the due date for filing return of income under Section 139(1) of the Income Tax Act, but complied with the conditions under Section 54F of the Act by purchasing a new asset within the time limit stipulated under Section 54F of the Act? (ii)Whether on the facts and in the circumstances of the case, when the assessee has not fulfilled the conditions laid down under Sub Section 4 of Section 54F of the Act, the Hon'ble ITAT was right in directing the AO to allow the claim of the assessee for the reason that the assessee had made investment new residential property within the time limits prescribed under Sub Section 1 to Section 54F of the Act?” 2/4 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.77 of 2022 2.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, 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 this appeal 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 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.] 07.03.2022

Internet : Yes

Index : Yes / No vkr/dhk 3/4 https://www.mhc.tn.gov.in/judis Tax Case Appeal No.77 of 2022 R. MAHADEVAN, J. AND J.SATHYA NARAYANA PRASAD

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vkr/dhk /rk To 1.Principal Commissioner of Income Tax 2 No.121, Mahatma Gandhi Road, Chennai 600 034. 2. The Income Tax Appellate Tribunal, Madras “A” Bench. 3.The Income Tax Officer, International Taxation – 2(2) Chennai – 600 006. Tax Case Appeal No.77 of 2022 07.03.2022 4/4 https://www.mhc.tn.gov.in/judis