Judgment dt. 19.09.2019 in T.C.(A) Nos.422 to 425 of 2010 CIT v. M/s.Mount Mettur Pharmacueticals Ltd. IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 19.09.2019 CORAM : HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal Nos.422 to 425 of 2010 Commissioner of Income Tax, Chennai. Appellant in all appeals Vs. M/s.Mount Mettur Pharmaceuticals Ltd., 32, 9th Street, Dr.Radhakrishnan Salai, Chennai-600004. Respondent in all appeals Tax Case Appeals filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 28.03.2008 made in ITA No.340/Mds/02; ITA No.850/Mds/2001; ITA No.886/Mds/2001 and ITA No.503/Mds/02. For Appellant : Mr.V.Rajesh Jr. Standing Counsel For Respondent : No Appearance Page 1 of 5 http://www.judis.nic.in Judgment dt. 19.09.2019 in T.C.(A) Nos.422 to 425 of 2010 CIT v. M/s.Mount Mettur Pharmacueticals Ltd. COMMON JUDGMENT (Delivered by DR.VINEET KOTHARI,J.) These Tax Case Appeals have been filed by Revenue calling in question correctness of order passed by Income Tax Appellate Tribunal, 'B' Bench, Chennai, by raising following substantial questions of law: "1.Whether in facts and circumstances of case, Tribunal was right in holding that action of assessee to enter into agreement to develop/sell land in not business activity to earn business profits? 2.Whether in facts and circumstances of case, Tribunal was right in holding that transfer of land of assessee had taken place as per Section 2(47) of Income-tax Act for purpose of computation of capital gains? 3.If answer to above is in affirmative, whether Tribunal was right in holding that assessee is hit by provisions of Section 54G(2) and is eligible for exemption of capital gains that was not appropriated towards purpose mentioned in clause to d of Section 54G(1)? And __________ Page 2 of 5 http://www.judis.nic.in Judgment dt. 19.09.2019 in T.C.(A) Nos.422 to 425 of 2010 CIT v. M/s.Mount Mettur Pharmacueticals Ltd. 4.Whether Tribunal was right in holding that exempted capital gain under Section 54F had to be excluded from book profits u/s.115JA? 2. When these matters are taken up for hearing, learned Standing Counsel brought to our notice Circular instruction issued by Central Board of Direct Taxes vide Circular No.17/2019 dated 08.08.2019 wherein it is stipulated that appeals shall not be filed/pursued by Department before High Court in cases where tax effect does not exceed Rs.1 Crore. 3. In these cases, tax effect are said to be less than monetary limit imposed and therefore, appeals filed by Revenue are dismissed as not pressed, keeping open substantial questions of law for determination in appropriate cases. (V.K.,J.) (C.S.N.,J.) 19.09.2019 Index : Yes/No bbr Page 3 of 5 http://www.judis.nic.in Judgment dt. 19.09.2019 in T.C.(A) Nos.422 to 425 of 2010 CIT v. M/s.Mount Mettur Pharmacueticals Ltd. To: 1. Registrar, Income Tax Appellate Tribunal, Madras "B" Bench, Chennai. 2. Commissioner of Income Tax (Appeals)-V, 121, Mahatma Gandhi Road, Chennai-34. 3. Joint Commissioner of Income-tax, Special Range II, Chennai-34. Page 4 of 5 http://www.judis.nic.in Judgment dt. 19.09.2019 in T.C.(A) Nos.422 to 425 of 2010 CIT v. M/s.Mount Mettur Pharmacueticals Ltd. DR.VINEET KOTHARI, J. and C.SARAVANAN, J. bbr T.C.(A) Nos.422 to 425 of 2010 19.09.2019 Page 5 of 5 http://www.judis.nic.in Commissioner of Income-tax, Chennai v. Mount Mettur Pharmaceuticals Ltd