IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 24.1.2017 CORAM THE HON'BLE MR.JUSTICE HULUVADI G. RAMESH AND THE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case (Appeal) Nos.1432 and 1433 of 2005 The Commissioner of Income Tax Tiruchirapalli. Appellant in both the cases Vs.
M/s.Annapoorani Welfare Trust, 17, Car Street, Karur. Respondent in TCA 1432/2005 M/s.Premnath Welfare Trust, 17, Car Street, Karur. Respondent in TCA 1433/2005 Tax Case Appeals filed under Sec. 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai, dated 20.6.2003 in ITA Nos.580/MDS/1999 and 1506/MDS/2000.
For Appellant : Mr.J.Narayanasamy Standing Counsel COMMON JUDGMENT (Judgment of the Court was delivered by Dr.Anita Sumanth, J.,) These Tax Case (Appeals) filed by the Revenue call in question the correctness of order passed by the Income Tax Appellate Tribunal, Madras, dated 20.6.2003 in ITA Nos.580/MDS/1999 and 1506/MDS/2000. The appeals have been admitted on 20.1.2006 for consideration of the following substantial questions of law:
"(i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the relinquishment of right to purchase the property is more right and does not amount to property, and therefore, would not result in capital gains is valid in law? and (ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding, whether the amount of Rs.6,00,000/- received for the compensation for rescinding the contract which is treated as a capital receipt is valid in law?"
2. Circular instruction issued by the Central Board of Direct Taxes No.21/2015, dated 10.12.2015 stipulates that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.20 lakhs. In the instant cases, the tax effect is less than the monetary limit imposed and the appeals are, hence, dismissed as not pressed, preserving the substantial question of law for determination in an appropriate case. No cost.
ssk.
(H.G.R.,J.) (A.S.M.,J.)
24.1.2017.
HULUVADI G. RAMESH, J.
and Dr.ANITA SUMANTH,J.
ssk.
T.C.A.Nos.1432 & 1433 of 2005 24.1.2017.
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