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[Cites 2, Cited by 0]

Madras High Court

Principal Commissioner Of Wealth Tax vs Selvi. J. Jayalalithaa (Deceased) on 30 August, 2022

Author: R. Mahadevan

Bench: R. Mahadevan, Mohammed Shaffiq

                                                                             TCA.No.683 of 2018


                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 30.08.2022

                                                    CORAM

                                  THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                                      and
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
                                               T.C.A.No. 683 of 2018

                Principal Commissioner of Wealth Tax,
                Central 2,
                No.108, Mahatma Gandhi Road,
                Chennai.                                                ..      Appellant
                                                  Versus

                1. Selvi. J. Jayalalithaa (deceased)
                   36, Poes Garden, Chennai 600 086.
                   PAN: AAF PJ 8986

                2. Ms.J. Deepa
                   D/o.Mr.Jayakumar,
                   Old No.9, New No.13,
                   Sivagnanam Street, T.Nagar,
                   Chennai 600 017.

                3. Mr.J. Deepak,
                   D/o, Mr. Jayakumar,
                   Old No.9, New No.13,
                   Sivagnanam Street, T.Nagar,
                   Chennai 600 017.
                (R2 & R3 impleaded as per order of this Court
                dated 30.08.2022 in CMP.Nos.4532, 4632 and 4628/2022
                in TCA.No.683/2018)                                    .. Respondents


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https://www.mhc.tn.gov.in/judis
                                                                                          TCA.No.683 of 2018


                      Tax Case Appeal filed under Section 27 of the Wealth Tax Act, 1957
                against the order of the Income Tax Appellate Tribunal Madras 'B' Bench, dated
                30.09.2016 passed in WTA.No.20/Mds/2008 in respect of Assessment Year
                1996-97.

                                           For Appellant   :   Mr. Karthik Ranganathan
                                                               Standing Counsel

                                           For Respondents : Mr.M.Sathyakumar for R2
                                                             Mr. S.L.Sudarsanam for R3



                                                     JUDGMENT

(Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 30.09.2016 passed by the Income Tax Appellate Tribunal, Madras 'B' Bench, in WTA.No.20/Mds/2008 for the assessment year 1996-97, raising the following substantial questions of law:

''1. Whether the Appellate Tribunal is correct in law in condoning the inordinate delay of 2255 days in filing the appeal by the Assessee before the ITAT?

2. Whether the Appellate Tribunal is correct in law in reaching to the conclusion that the reasons cited by the Appellant for the delay in filing the appeal do justify 2/4 https://www.mhc.tn.gov.in/judis TCA.No.683 of 2018 existing of “sufficient cause” and that the delay is not wilful?

3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal is correct in quashing the order of the learned CIT passed under section 25(2) of the Wealth Tax Act, 1957, based on its earlier income tax order dated 11.01.2008, without going into the merits of the issues discussed in the said order?

4. Whether the Appellate Tribunal is correct in quashing the Wealth Tax order based on tis earlier income tax order dated 11.01.2008 which is the subject matter of appeal pending in TCA.No.552 of 2008 before the Hon'ble High Court of Madras?.”

2. When the matter was taken up for consideration, the learned counsel for 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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https://www.mhc.tn.gov.in/judis TCA.No.683 of 2018 R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

msr

3. In the light of the aforesaid submissions made by the learned counsel for 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 the substantial questions of law for determination in an appropriate case.

No costs.

                                                                     [R.M.D,J.]            [M.S.Q.,
                J.]
                                                                            30.08.2022
                msr
                Index        : Yes / No

                To

1.The Deputy Commissioner of Wealth Tax, Central Circle II(2), Chennai-34.

2. The Commissioner of Income Tax, (Central) VIII, Chennai-34

3. The Income Tax Appellate Tribunal Madras 'B' Bench, Chennai.

T.C.A.No. 683 of 2018 4/4

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