THE COMMISSIONER OF INCOME TAX vs. M/S RAMANIYAM GANESH

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TCA/919/2015HC Madras01 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 grounds that the matter is covered under the Low Tax Effect Scheme as per Circular No. 9/2024. The Court explicitly stated that the substantial questions of law arising in this appeal are kept open to be decided at a later point in time. Therefore, no finding was reached on the merits of the three substantial questions of law. The operative direction was to dismiss the appeal, with no order as to costs.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Chennai, dated August 26, 2011, in ITA No. 1887/Mds/2010. The appeal was admitted by the High Court on December 7, 2015, on three substantial questions of law. The respondent is Ramaniyam Ganesh. The appeal concerns the eligibility of the assessee for deduction under Section 80IB(10) and the treatment of profit arising from the transfer of a partner's land to the firm.

What were the issues?

The High Court was to decide the following substantial questions of law: 1. Whether the ITAT was correct in holding that the assessee is entitled to the deduction claimed under Section 80IB(10)? 2. Whether the ITAT's finding regarding eligible profit on the transfer of a partner's land to the firm, by applying Section 80IA(13) read with Section 80IB(10), is proper and relief should be allowed? 3. Whether the legal fiction in Section 45(3) can be extended to the provisions of Section 80IB(10) and relief granted to the assessee? The Revenue contended that the matter is covered under the Low Tax Effect Scheme as per Circular No. 9/2024 dated September 17, 2024. The judgment does not record any specific arguments from the assessee regarding these questions.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80IB(10),Section 80IA(13),Section 45(3)

AI-generated summary — verify with the full judgment below

T.C.A.No.919 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01.10.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.No.919 of 2015 The Commissioner of Income Tax Chennai.

.. Appellant Vs. Ramaniyam Ganesh .. Respondent Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras

"D"

Bench,

Chennai

dated

26.08.2011

in I.T.A.No.1887/Mds/2010. For the Appellant : Mr.J.Narayanasamy Senior Standing Counsel For the Respondent : Mr.A.S.Sriraman JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) The present tax case appeal was admitted on 07.12.2015 by this Court on the following substantial questions of law:- "1. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee is entitled to the deduction claimed u/s.80IB(10)? Page 1 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.919 of 2015 2. Whether the finding of the Tribunal relating to eligible profit on account of transfer of partner's land to the firm by applying the provisions u/s.80IA(13) r/w. Section 80IB(10) is proper and relief is to be allowed? 3. Whether the legal fiction in Section 45(3) can be extended to the provisions of Section 80IB(10) and relief granted to the assessee?" 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 Scheme 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 questions of law arising in this appeal are 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) 01.10.2024 Neutral Citation:Yes/No drm Page 2 of 3 https://www.mhc.tn.gov.in/judis T.C.A.No.919 of 2015 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.No.919 of 2015 01.10.2024

Page 3 of 3 https://www.mhc.tn.gov.in/judis

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