Madras High Court
Principal Commissioner Of Income vs M/S. St. Xavier Educational & on 6 December, 2021
Tax Case Appeal No.527 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.12.2021
CORAM :
THE HON'BLE MR. JUSTICE R. MAHADEVAN
AND
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
Tax Case Appeal No.527 of 2021
Principal Commissioner of Income
Tax (Exemptions),
Corporate Cricle-2(1),
Chennai 600 034 ...Appellant
-vs-
M/s. St. Xavier Educational &
Charitable Trust,
No.103/G2, Bye Pass Road,
Vanarapettai,
Tirunelveli 627 003 ...Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 3.5.2018 passed by the Income Tax Appellate Tribunal,
Madras “A” Bench, Chennai in I.T.A.No.1192/CHNY/2017.
For Appellant : Mr.J. Narayanasamy
Sr. Standing Counsel
For Respondent : Mrs. Sri Niranjani
for Mr. Baskar
1/4
https://www.mhc.tn.gov.in/judis
Tax Case Appeal No.527 of 2021
JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
This tax case appeal has been filed by the appellant / Revenue, calling in
question the correctness of the order dated 03.05.2018 passed by the Income Tax
Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.1192/CHNY/2017 relating
to the assessment year 2013-14 by raising the following substantial questions of
law:-
'(i) Whether in the facts and in the circumstances of the case
and in law, the Hon'ble ITAT is justified and right in law holding
that there is no violation of the section 13(1)(c) of the Income Tax
Act, 1961 when the AO has rightly invoked the provisions of
section 13(1)(c) and denied the exemption under section 11 of the
Income Tax Act?
(ii) Whether in the facts and in the circumstances of the case
and in law, the ITAT was right in law in holding that the provisions
of Explanation 3 below Sec 13(9) of the Income Tax Act, 1961 are
not attracted when the two trustees are having substantial interest
with voting power and share holding more than 20% within the
meaning of Explanation 3(i) below section 13(9) of the Income Tax
Act, 1961?”
https://www.mhc.tn.gov.in/judis
Tax Case Appeal No.527 of 2021
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.
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.]
06.12.2021
Internet : Yes
Index : Yes / No
msr
https://www.mhc.tn.gov.in/judis
Tax Case Appeal No.527 of 2021
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
msr
To
Income Tax Appellate Tribunal, Madras “A” Bench,
Chennai
Tax Case Appeal No.527 of 2021
06.12.2021
https://www.mhc.tn.gov.in/judis
