Commissioner Of Income Tax vs M/S. Vel Shree R. Rangarajan
2021 Latest Caselaw 24061 Mad

                                                                               TCA Nos. 684 of 2010 etc., batch

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      Dated : 07.12.2021

                                                            CORAM :

                            THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                               and
                          THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                  Tax Case Appeal Nos. 684, 685, 686, 687, 689, 690, 691, 938,
                                         939, 940, 941, 942, 943, 944 and 945 of 2010
                                                               ---

TC(A) No. 684 of 2010

Commissioner of Income Tax Central III Chennai .. Appellant

Versus

M/s. Vel Shree R. Rangarajan Dr. Sankuntala Rangarajan Educational Academy Shanti Sudha Old No.24, New No.38 ABM Avenue Chennai - 600 028 .. Respondent

TCA No. 684 of 2010:- Appeal filed under Section 260-A of The Income Tax Act, 1961 against the Order dated 22.05.2009 passed in ITA No. 1732/Mds/2008 on the file of The Income Tax Appellate Tribunal, Chennai "C" Bench.

TCA No. 684 of 2010

For Appellant : Mr. J. Narayanasamy For Respondent : Ms. Sri Niranjani for Mr. G. Baskar https://www.mhc.tn.gov.in/judis

TCA Nos. 684 of 2010 etc., batch

COMMON JUDGMENT

(Judgment of the Court was delivered by R. Mahadevan, J)

These tax case appeals have been filed by the appellant/Revenue, calling

in question the correctness of the various orders passed by the Income Tax

Appellate Tribunal, Chennai.

2. When TCA Nos. 684 to 691 of 2010 were taken up for hearing on

13.12.2010, the following substantial question of law was raised by the

appellant:-

"Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the development fee collected as part of the fee from the students constituted capital receipts and did not have the character of income, on the basis of assessee's claim that such development fees were used for meeting capital expenditure."

3. When these appeals are taken up for consideration today, 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 of

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 these appeals is less than the threshold limit. https://www.mhc.tn.gov.in/judis

TCA Nos. 684 of 2010 etc., batch

4. In the light of the above submissions made by the learned counsel

for the appellant/Revenue, these appeals, wherein, the tax effect is said to be

less than the monetary limit imposed, are dismissed as withdrawn, keeping

open the substantial question of law for determination in an appropriate cases.

No costs.

                                                                        (R.M.D.J.,)        (M.S.Q.J.,)

                                                                                07.12.2021

                  Index           : Yes/No

                  Internet        : Yes/No

                  rsh

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

TCA Nos. 684 of 2010 etc., batch

R. MAHADEVAN, J and MOHAMMED SHAFFIQ, J

rsh

TCA Nos. 684 of 2010 etc., batch

07.12.2021

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