Madras High Court
Director Of Income Tax Exemptions ... vs M/S.Sri Vekkaliamman on 26 April, 2021
T.C.A.No.263 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.04.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.263 of 2014
Director of Income Tax Exemptions II,
Chennai. ... Appellant
Vs.
M/s.Sri Vekkaliamman
Educational and Charitable
Trust, No.108, East Madha
Church Street, Royapuram,
Chennai – 600 103. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“B” Bench, dated 27.09.2013 in I.TA.No.1402/Mds/2013, Assessment
Year 2009-10.
For Appellant : Mr.J.Narayanaswamy
Senior Standing Counsel
For Respondent : Ms.Sangeetha
JUDGMENT
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T.C.A.No.263 of 2014
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.J.Narayanaswamy, learned Senior Standing
Counsel for the appellant/Revenue and Ms.Sangeetha, learned counsel
for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 27.09.2013 made in I.TA.No.1402/Mds/2013 on the file of the
Income Tax Appellate Tribunal, Chennai, “B” Bench (for brevity, the
Tribunal) for the Assessment Year 2009-10.
3.The appeal was admitted on 22.07.2014 on the following
substantial questions of law:
“1.Whether on the facts and in the
circumstances of the case, the Income Tax Appellate
Tribunal was right in law in holding that the
assessee is eligible for exemption under Section 11
of the Act?
2.Whether on the facts and in the
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T.C.A.No.263 of 2014
circumstances of the case, the Tribunal was right in
law in holding that there is no violation within the
meaning of Section 13(1)(c) read with Section 13(2)
and Section 13(3) of the Income Tax Act when the
building contract work was awarded to the
Managing Trustee, thereby allowing him to earn
profit from the said contract?”
4.The learned Senior Standing Counsel for the appellant submits
that the above appeal is not pursued by the Revenue on account of the
Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued
by the Central Board of Direct Taxes. By the said Circular, the monetary
limit for filing or pursuing an appeal before the High Court has been
increased to Rs.1 crore. It is further submitted that the tax effect in this
case is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal
is dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed are left open. In the event the tax
effect in this case is above the threshold limit fixed in the said
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T.C.A.No.263 of 2014
Circular, liberty is granted to the Revenue to make a mention to this
Court to restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
26.04.2021
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Chennai, “B” Bench
2.The Director of Income Tax Exemptions II,
Chennai.
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T.C.A.No.263 of 2014
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.263 of 2014
26.04.2021
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