The Commissioner of Income-tax, Chennai v. R. Rajnikant
[Citation -2019-LL-0819-134]

Citation 2019-LL-0819-134
Appellant Name The Commissioner of Income-tax, Chennai
Respondent Name R. Rajnikant
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 19/08/2019
Assessment Year 2003-04
Judgment View Judgment
Keyword Tags income from business • course of survey • revised return • low tax effect • monetary limit • money lending business • withdrawal of claim • claim of bad debts
Bot Summary: 1574 and 1575/Mds/2009 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment years 2003-04 and 2004-05. These appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961, are directed against the common order dated 18.12.2009 made in ITA.Nos. The appeals were admitted on 11.1.2001 on the following substantial questions of law : i. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the income from the money lending activity between its friends and relatives as hand loan without any stipulated terms on the basis of relationship, as per the assessee's admission during the course of survey had to be treated as income from business, when the assessee had ratified the statement given during the survey by way of revised return wherein the bad debt claim was withdrawn and ii. The learned Senior Standing Counsel for the appellant submits that the above appeals are not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. It is further submitted that the tax effect in the respective cases is less than the threshold limit. In the light of the said submissions, the above tax case appeals are dismissed on account of the low tax effect. In the event the tax effect in the respective cases is above the threshold 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.


TCA.Nos.1082 & 1083/2010 In High Court of Judicature at Madras Dated : 19.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.1082 and 1083 of 2010 Commissioner of Income Tax, Chennai ...Appellant Vs Shri.R.Rajnikant ...Respondent APPEALS under Section 260A of Income Tax Act, 1961 against common order dated 18.12.2009 made in ITA.Nos.1574 and 1575/Mds/2009 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench for assessment years 2003-04 and 2004-05. For Appellant: Mr.M.Swaminathan, SSC assisted by Ms.S.Premalatha, SC For Respondent: Mr.A.S.Sriraman COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.M.Swaminathan, learned Senior Standing Counsel assisted by Ms.Premalatha, learned Standing Counsel appearing for appellant Revenue and Mr.A.S.Sriraman, learned counsel appearing for 1/4 http://www.judis.nic.in TCA.Nos.1082 & 1083/2010 respondent assessee. 2. These appeals, filed by Revenue under Section 260A of Income Tax Act, 1961, are directed against common order dated 18.12.2009 made in ITA.Nos.1574 and 1575/Mds/2009 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench for assessment years 2003-04 and 2004-05. 3. appeals were admitted on 11.1.2001 on following substantial questions of law : i. Whether, on facts and circumstances of case, Tribunal was right in holding that income from money lending activity between its friends and relatives as hand loan without any stipulated terms on basis of relationship, as per assessee's admission during course of survey had to be treated as income from business, when assessee had ratified statement given during survey by way of revised return wherein bad debt claim was withdrawn ? and ii. Whether, on facts and circumstances of case, Tribunal was right in holding that assessee is entitled for claim of deduction of bad debt for assessment year 2006-07? 2/4 http://www.judis.nic.in TCA.Nos.1082 & 1083/2010 4. learned Senior Standing Counsel for appellant submits that above appeals are not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in respective cases is less than threshold limit. 5. In light of said submissions, above tax case appeals are dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect in respective cases is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeals to be heard and decided on merits. No costs. 19.8.2019 Internet: Yes To Income Tax Appellate Tribunal, Chennai 'B' Bench. RS 3/4 http://www.judis.nic.in TCA.Nos.1082 & 1083/2010 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.Nos.1082 & 1083 of 2010 19.8.2019 4/4 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. R. Rajnikant
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