Commissioner of Income-tax-II, Coimbatore v. Madan Mohan Chandak
[Citation -2020-LL-0214-67]
| Citation | 2020-LL-0214-67 |
|---|---|
| Appellant Name | Commissioner of Income-tax-II, Coimbatore |
| Respondent Name | Madan Mohan Chandak |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 14/02/2020 |
| Judgment | View Judgment |
| Keyword Tags | succession of business • monetary limit • going concern • tax effect • surplus |
| Bot Summary: | For Appellant : Mr.T.R.Senthil Kumar , Sr.Standing Counsel for Ms.K.G.Usha Rani JUDGMENT 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, 'D' Bench, Madras, by raising the following substantial questions of law: Page 1 of 4 Order in TCA No.644 of 2011 dated 14.02.2020 1.Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the transaction was to be treated as a transfer within the meaning of Section 47(xiv) and the surplus over the net worth was exempted from income-tax 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that Section 50B read with Section 2(42C) was not applicable to the facts of the case 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assets and liability of the proprietary concern cannot become the assets and liability of the company before succession as per Section 47(xiv) and 4. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the transaction was not a sale covered under Section 50B when the assets and liability was transferred as a going concern which was not preceded by succession of business of a proprietary concern by the company as per the conditions imposed u/s.47(xiv) 2. When the matter was taken up for hearing, the learned Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is Page 2 of 4 Order in TCA No.644 of 2011 dated 14.02.2020 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/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeals filed by the Revenue is dismissed as not pressed, keeping open the substantial questions of law for determination in an appropriate case. 14.02.2020 arr Note to Office: Copy of this order may be sent to both parties. |