COMMISSIONER OF INCOME TAX vs. M/S SRI VIGNESH REAL ESTATE

T.C.A.No.937 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 06.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.937 of 2019 Commissioner of Income Tax, Coimbatore.

... Appellant Vs M/s.Sri Vignesh Real Estate, C/o.Chellakutty, C.R.Complex, No.27, Avinashi Road, Coimbatore 641 014. ... Respondent PRAYER : Appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “C” Bench, dated 30.03.2012 passed in ITA.No.1595/Mds/2011. For Appellant :Mr.T.R.Senthil Kumar Senior standing counsel For Respondent :Mr.T.N.Seetharaman 1/6 http://www.judis.nic.in T.C.A.No.937 of 2019 J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This Tax Case Appeal has been preferred by the Revenue against the order dated 30.03.2012 passed in ITA.No.1595/Mds/2011 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 1992-93. 2.The order of the CIT(A)-I, Chennai, dated 06.07.2011 for the assessment year, 1992-93 was challenged before the Tribunal by the Revenue. The Appellate Tribunal partly allowed the same. Against the order of the Appellate Tribunal only, the present appeal has been filed. 3.The appeal is admitted on the following substantial questions of law : (i)Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in upholding the order of the Commissioner of Income Tax (Appeals) in connection with the sum of Rs.32,50,000/- assessed as unexplained investment by the assessing officer? (ii)Whether on the facts and circumstances of the case, 2/6 http://www.judis.nic.in T.C.A.No.937 of 2019 the Income Tax Appellate Tribunal was right in accepting the claim of the assessee that the source of unexplained investment was out of sale proceeds of the land, merely on the basis of probability without examining the facts? 4.Mr.T.R.Senthilkumar, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect in this case is less than Rs.1 crore and is 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 this case, tax effect is less than Rs.1 crore and therefore, the case has to be dismissed. 5.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 3/6 http://www.judis.nic.in T.C.A.No.937 of 2019 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 6.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 Direct Taxes, Delhi, the Tax Case Appeal is 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 appeal to be heard and decided on merits. No costs. (NKKJ) (PVJ) 06.12.2019 sai To 1.The Commissioner of Income Tax, Coimbatore. 4/6 http://www.judis.nic.in T.C.A.No.937 of 2019 2.Income Tax Appellate Tribunal 'C' Bench, Chennai. 5/6 http://www.judis.nic.in T.C.A.No.937 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

sai T.C.A.No.937 of 2019 Dated : 06.12.2019 6/6 http://www.judis.nic.in