2022 (8) TMI 1569 - HC - Income Tax

Maintainability of appeal on low tax effect - Addition in respect of foreign remittances shown by the assessee as gifts deleted by ITAT - HELD THAT - The present appeals wherein the tax effect is said to be less than the monetary limit imposed are dismissed as withdrawn keeping open the substantial questions of law for determination in appropriate cases.

Summary

In the case before the Madras High Court, the appellant/Revenue challenged the Income Tax Appellate Tribunal's decision regarding foreign remittances classified as gifts to the assessee from Shri K Ansari for the assessment years 2004-05 to 2009-10. The primary legal questions concerned whether the Tribunal correctly concluded that these remittances were genuine gifts and whether Shri Ansari had the means to provide such gifts.During the proceedings, the appellant's counsel highlighted Circular No.17/2019 from the Central Board of Direct Taxes, which advises against pursuing appeals in the High Court when the tax effect is below Rs.1,00,00,000/- (Rupees One Crore). Given that the tax effect in these appeals was below this threshold, the court dismissed the appeals as withdrawn. The substantial questions of law were left open for future determination in appropriate cases, and no costs were imposed. Consequently, related miscellaneous petitions were also closed.