COMMISSIONER OF INCOME TAX Vs. VEL R. RANGARAJAN SAGUNTHALA RANGARAJAN
LAWS(MAD)-2020-10-164
HIGH COURT OF MADRAS
Decided on October 14,2020

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Vel R. Rangarajan Sagunthala Rangarajan Respondents

JUDGEMENT

VINEET KOTHARI,J. - (1.) This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras C Bench dated 07.06.2012 in ITA No.1935/MDS/2011, by raising the following substantial questions of law: "1.Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in deleting the addition under Section 69 by relying upon the order of the Hon'ble Supreme Court in the case of Sargam Cinema vs. CIT, 2010 328 ITR 513 and order of Hon'ble Madras High Court in the case of K.K.Sehaiyer vs. CIT, 2000 246 ITR 351 ? 2.Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in deleting the addition under Section 69 by not following the decision in the case of Indira Hospital Research and Diagnostic Centre vs. AICT reported in 208 Taxman 124? 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in deleting the addition made by the Assessing Officer towards interest when the assessee has not proved before the Assessing Officer that the funds advanced to trustees were out of surplus funds and not out of borrowed funds?"
(2.) When the matter is taken up for hearing, learned Standing Counsel brought to our notice the Circular issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8 August 2019, 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).
(3.) In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs.;


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