Madras High Court
Principal Commissioner Of Income ... vs M/S.Madras Social Service ... on 15 July, 2021
T.C.A.No.365 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 15.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.365 of 2021
Principal Commissioner of Income Tax (Exemptions),
Chennai Circle, Aayakar Bhavan,
Annexe Building, III Floor,
121, M.G. Road,
Nungambakkam,
Chennai – 600 034. ... Appellant
Vs.
M/s.Madras Social Service Society,
No.329, Old No.128,
Kolping Tower, II Floor,
TTK Road, Alwarpet,
Chennai – 600 018. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“C” Bench, dated 16.02.2017 in I.TA.No.2419/Mds/2016, Assessment
Year 2012-13.
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T.C.A.No.365 of 2021
For Appellant : Mr.J.Narayanasamy
Senior Standing Counsel
For Respondent : Mr.M.P.Senthil Kumar
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.J.Narayanasamy, learned Senior Standing
Counsel for the appellant/Revenue and Mr.M.P.Senthil Kumar, 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 16.02.2017 made in I.TA.No.2419/Mds/2016 on the file of the
Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the
Tribunal) for the Assessment Year 2012-13.
3.The appellant/Revenue has raised the following substantial
questions of law in the above appeal :
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T.C.A.No.365 of 2021
“1.Whether on the facts and in the
circumstances of the case, the Hon'ble ITAT was
right in law in holding that the assessee is eligible
for exemption u/s.11 of the I.T.Act, in complete
disregard to the facts of the case and the provisions
of newly inserted provisos to Section 2(15) of the IT
Act?
2.Whether on the facts and in the
circumstances of the case and in law, the ITAT was
right in law in holding that the activities are
charitable even though the objects and activities of
the assessee are in the nature of 'advancement of
general public utility' and the aggregate receipts
during the previous year exceeded Rs.25 lakhs?
3.Whether on the facts and in the
circumstances of the case and in law, the ITAT was
right in law in holding that the activities are
charitable without giving a finding as to under which
limb of Sec.2(15) the activities of the assessee would
fall?
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T.C.A.No.365 of 2021
4.Whether on the facts and in the
circumstances of the case and in law, the ITAT erred
in not following its own earlier decision in ITO vs.
Kalanjiam Development and Financial Services in
ITA No.625/Mds/2015 dated 07.08.2015 on identical
issue?”
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
Circular, liberty is granted to the Revenue to make a mention to this
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T.C.A.No.365 of 2021
Court to restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
15.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “C” Bench
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T.C.A.No.365 of 2021
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.365 of 2021
15.07.2021
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