Judgt. dt. 5.6.2020 in T.C.A.45/2015 CIT v. SKM Shree Shivkumar 1/5 IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 5.6.2020 CORAM HON'BLE DR.JUSTICE VINEET KOTHARI AND HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (A) No.45 of 2015 Commissioner of Income Tax Circle I Erode. Appellant Vs. SKM Shree Shivkumar 41, Periyar Nagar, Erode. PAN: AJCPS0629L Respondent Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 17.7.2014 made in ITA No.1965/Mds/2011. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For Respondent : Mr.R.Sivaraman JUDGMENT (Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by Revenue, calling in question correctness of order passed by Income Tax Appellate Tribunal, 'B' Bench, Chennai, dated 17.7.2014 made in ITA http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.45/2015 CIT v. SKM Shree Shivkumar 2/5 No.1965/Mds/2011, for Assessment Year 2008-2009, by raising following substantial questions of law: "(i) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in law in holding that provisions of Sections 2(22)(e), 2(24)(iv) or 56(2)(vi) cannot be invoked in assessee case? (ii) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that M/s.SKM Animal Feeds and Food (India) Limited could be made as party to family arrangement between family members, when company is separate legal entity having distinct existence, independent of its directors who are family members? (iii) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that alienation of assets of private company M/s.SKM Animal Feeds and Foods (India) Limited to one of its directors will not amount to transfer http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.45/2015 CIT v. SKM Shree Shivkumar 3/5 in pursuant of family arrangement? (iv) Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that corporate veil of company M/s.SKM Animal Feeds and Foods (India) Limited was required to be lifted to see entire transaction as family settlement arrived through arbitration award?" 2. When matter is taken up for hearing, learned Senior Standing Counsel brought to our notice Circular instruction issued by Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 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.1,00,00,000/- (Rupees One Crore). 3. In instant case, tax effect is said to be less than monetary limit imposed and therefore, Appeal filed by Revenue is dismissed, as withdrawn, keeping open substantial questions of law for determination in appropriate cases. No costs. (V.K.,J.) (R.S.K.,J.) 5.6.2020 http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.45/2015 CIT v. SKM Shree Shivkumar 4/5 Index : Yes/No Internet : Yes/No ssk. To 1. Commissioner of Income Tax Circle I, Erode. 2. Income Tax Appellate Tribunal, 'B' Bench, Chennai. http://www.judis.nic.in Judgt. dt. 5.6.2020 in T.C.A.45/2015 CIT v. SKM Shree Shivkumar 5/5 DR.VINEET KOTHARI, J. and R.SURESH KUMAR, J. ssk. Tax Case (A) No.45 of 2015 5.6.2020. http://www.judis.nic.in Commissioner of Income-tax Circle I, Erode v. SKM Shree Shivkumar