Dismissed

Commisisioner of Income Tax v. Arihant Shelters

Madras HC28 Nov 2022TC/494/2008

Case brief

AI extract

What is this about?

Revenue filed a Tax Case Appeal challenging the Tribunal's order on undisclosed share application money. The Appellant counsel cited a CB DT Circular restricting appeals under Rs. 1 crore in tax effect. The Court dismissed the appeal as withdrawn, noting the tax effect was below the threshold, but kept the legal question open.

What did the court decide?

Appeal dismissed as withdrawn; original order to be returned.

Commisisioner of Income Tax Vs Arihant Shelters — Income Tax | Madras HC (2022)

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Tax Case Appeal No. 494 of 2008

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED :28.11.2022

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CORAM :

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THE HONOURABLE MR. JUSTICE S.VAIDYANATHAN

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AND

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THE HONOURABLE MR. JUSTICE C.SARAVANAN

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Tax Case Appeal No.494 of 2008

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Commissioner of Income Tax Chennai.

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. .. Appellant

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Versus

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Arihant Shelters (India) Ltd. 18, 12th Avenue, Ashok Nagar, Chennai 600 083.

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.. Respondent

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Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961

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against the order dated 31.10.2007 passed by the Income Tax Appellate Tribunal, Madras “A” Bench, in I.T.A.No.738/Mds/06.

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For Appellant : Mr.T.Ravikumar

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J U D G M E N T

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This Tax Case Appeal has been filed by the Appellant / Revenue, calling in

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question the correctness of the order dated 31.10.2007 passed by the Income Tax https://www.mhc.tn.gov.in/judis

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1/4

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Tax Case Appeal No. 494 of 2008

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Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.738/Mds/03, relating to the assessment year 2002-03.

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2.By order dated 02.07.2008, this court admitted the aforesaid tax case

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appeal on the following substantial question of law:

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“Whether on the facts and circumstances of the case, the Tribunal was right in holding that share application money in fictitious names cannot be treated as undisclosed income of the assessee, especially when the assessee has accepted part of the amount and offered the same for taxation?

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When the matter was taken up for consideration, the learned counsel for

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the Appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, 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). It is also submitted that the tax effect in this appeal is less than the threshold limit.

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In the light of the aforesaid submissions made by the learned counsel for

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the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open

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the substantial question of law for determination in an appropriate cases. No

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https://www.mhc.tn.gov.in/judis

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2/4

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Tax Case Appeal No. 494 of 2008

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costs.

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Registry is directed to return the original order, if any enclosed along

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with this Appeal after retaining the copy of the same with the court bundle.

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[S.V.N, J.] [C.S.N, J.] 28.11.2022

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Internet : Yes Index : Yes / No arr

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https://www.mhc.tn.gov.in/judis

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3/4

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Tax Case Appeal No. 494 of 2008

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S. VAIDYANATHAN, J. AND C.SARAVANAN, J.

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arr

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The Income Tax Appellate Tribunal, Chennai “A” Bench.

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Commissioner of Income Tax Chennai.

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TCA No. 494 of 2008

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28.11.2022

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https://www.mhc.tn.gov.in/judis

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Commisisioner of Income Tax v. Arihant Shelters

Case brief

What is this about?

What did the court decide?

Commisisioner of Income Tax v. Arihant Shelters

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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