THE COMMISSIONER OF INCOME vs. SHRI V.SEKARAN
What did the High Court hold?
The High Court dismissed the Tax Case Appeals on the ground of tax effect. The Court referred to Circular No. 17/2019 dated 08.08.2019, which specifies that the monetary limit for filing appeals before the High Court is Rs. 1 crore. As the tax effect in these cases was stated to be less than Rs. 1 crore, the appeals were dismissed. However, the Court explicitly stated that the substantial questions of law framed were left open. Liberty was granted to the Revenue to seek restoration of the appeals if the tax effect was found to be above the prescribed limit, for hearing and decision on merits. No costs were awarded.
What were the facts?
These appeals were filed by the Revenue against the order of the Income Tax Appellate Tribunal, Chennai, dated December 31, 2007. The appeals, T.C.A.Nos.923 of 2019 and 924 of 2019, pertain to assessment years not explicitly stated in the judgment. The respondent in T.C.A.No.923 of 2019 is Shri V. Sekaran, and in T.C.A.No.924 of 2019 is M/s. Nala Hotels Pvt. Ltd. The appeals were admitted on substantial questions of law concerning the deletion of additions made by the Assessing Officer. The Revenue's counsel submitted that the tax effect in these cases was less than Rs. 1 crore, which is the monetary limit for filing appeals before the High Court as per CBDT Circular No. 17/2019.
What were the issues?
The Tribunal had to decide the following substantial questions of law: 1. Whether, on the facts and circumstances of the case, the Tribunal was right in law in deleting the addition of Rs. 16,66,400/- made on account of the purchase of lands? (Question of law) 2. Whether the Tribunal was right in deleting the addition of Rs. 1,08,53,413/- representing investment which had not been properly explained pertaining to the loose sheet containing various transactions found during search? (Question of law) Contentions: Assessee: Not recorded in the judgment. Revenue: The tax effect in these cases is less than Rs. 1 crore and is covered by Circular No. 17/2019 dated 08.08.2019 issued by the CBDT, which fixes the monetary limit for filing an appeal before the High Court at Rs. 1 crore. Therefore, these appeals should be dismissed.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
T.C.A.Nos.923 & 924 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 19.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.923 & 924 of 2019 T.C.A.Nos.923 of 2019 The Commissioner of Income Tax, Salem. ... Appellant (in both appeals) Vs Shri.V.Sekaran, 28/52, Bazaar Street, Erumaipatty PO., Namakkal District. ... Respondent (in both appeals) PRAYER in T.C.A.No.923 of 2019: Appeal under Section 260A of Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal
“D”
Bench,
Chennai
dated
31.12.2007
in IT(S.S.)A.No.77/Mds/2003. For Appellant :Ms.V.Pushpa, Junior Standing counsel for Mr.K.Subramaniam For Respondent :Mr.M.P.Senthilkumar 1/6 http://www.judis.nic.in T.C.A.Nos.923 & 924 of 2018 T.C.A.Nos.924 of 2019 The Commissioner of Income Tax, Salem. ... Appellant (in both appeals) Vs M/s.Nala Hotels Pvt. Ltd., 22C, Co-operative Colony, Gandhi Nagar, Mohannoor Road, Namakkal District. ... Respondent (in both appeals) PRAYER in T.C.A.No.924 of 2019: Appeal under Section 260A of Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal
“D”
Bench,
Chennai
dated
31.12.2007
in IT(S.S.)A.No.55/Mds/2005. For Appellant :Mr.K.Subramaniam For Respondent :Mr.M.P.Senthilkumar J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) The Appeals have been preferred by the Revenue against the order of the Income Tax Appellate Tribunal “D” Bench, Chennai, dated 31.12.2007 in IT(S.S.)A.Nos.77/Mds/2003 and 55/Mds/2005. 2/6 http://www.judis.nic.in T.C.A.Nos.923 & 924 of 2018 2.These appeals are admitted on the following substantial questions of law : “(i).Whether on the facts and circumstances of the case the Tribunal was right in law in deleting the addition of Rs.16,66,400/- made on account of purchase of lands?
(ii).Whether the Tribunal was right in deleting the addition of Rs.1,08,53,413/- representing investment which had not been properly explained pertaining to the loose sheet containing various transactions found during search?" 3.Ms.V.Pushpa, learned Standing Counsel appearing on behalf of the appellant would submit that the tax effect in these cases are less than Rs.1 crore and are covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 crore. In these cases, tax effect is less than Rs.1 crore and therefore, these cases have to be 3/6 http://www.judis.nic.in T.C.A.Nos.923 & 924 of 2018 dismissed. 4.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the said Circular, which prescribes monetary limit for filing appeal is usefully extracted as follows: 2.As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals / SLPs in Income- tax matters Monetary Limit (Rs.) 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000 5.In view of the submissions made by the learned counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of 4/6 http://www.judis.nic.in T.C.A.Nos.923 & 924 of 2018 Direct Taxes, Delhi, the Tax Case Appeals are dismissed on account of tax effect. However, the substantial questions of law framed is left open. In the event the tax effect is above the limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decided on merits. No costs. (NKKJ) (PVJ) 19.11.2019 sai To 1.The Commissioner of Income Tax, Salem. 2.Income Tax Appellate Tribunal 'D' Bench, Chennai. 5/6 http://www.judis.nic.in T.C.A.Nos.923 & 924 of 2018 N.KIRUBAKARAN, J. and P.VELMURUGAN
, J.
sai T.C.A.Nos.923 & 924 of 2019 Dated : 19.11.2019 6/6 http://www.judis.nic.in
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