Commissioner Of Income Tax vs M/S.Council For Leather Exports
2021 Latest Caselaw 14604 Mad

                                                                             T.C.A.No.337 of 2016

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 20.07.2021

                                                      CORAM

                                    THE HON'BLE MR. JUSTICE M.DURAISWAMY
                                                     AND
                                    THE HON'BLE MRS.JUSTICE R. HEMALATHA

                                                T.C.A.No.337 of 2016

                     Commissioner of Income Tax,
                     Chennai.                                                ... Appellant
                                                         Vs.


                     M/s.Council for Leather Exports
                     CMDA Tower II 3rd Floor
                     Gandhi Irwin Bridge Road,
                     Egmore, Chennai - 600 008.                              ... Respondent



                               Appeal preferred under Section 260A of the Income Tax Act,
                     1961, against the order of the Income Tax Appellate Tribunal, Madras,
                     “A” Bench, dated 26.06.2015 in I.TA.No.1192/Mds/2014, Assessment
                     Year 2010-11.


                               For Appellant    : Mr.J.Narayanaswamy
                                                  Senior Standing Counsel

                               For Respondent   : Mr.R.Venkat Narayanan
                                                  for M/s.Subbaraya Aiyar Padmanabhan


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                                                                                    T.C.A.No.337 of 2016




                                                     JUDGMENT

(Judgment was delivered by M.DURAISWAMY, J.)

We have heard Mr.J.Narayanaswamy, learned Senior Standing

Counsel for the appellant/Revenue and Mr.R.Venkat Narayanan for

M/s.Subbaraya Aiyar Padmanabhan, 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 26.06.2015 made in I.TA.No.1192/Mds/2014 on the file of the

Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the

Tribunal) for the Assessment Year 2010-11.

3.The appeal was admitted on the following substantial question of

law:

“Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee which has objects to

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promote and support the leather business industry, is not for profit, but to do charity through advancement of object of general public utility and the assessee is existing for charitable purpose as per Section 2(15) of the Act and consequently, the assessee is entitled for exemption under Section 10(23C)(iv)?”

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 question of law framed is 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 Court to

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restore the appeal to be heard and decided on merits. No costs.

                                                                   [M.D., J.]      [R.H., J.]
                                                                         20.07.2021


                     Index : Yes/No
                     Internet : Yes
                     mkn


                     To

The Income Tax Appellate Tribunal, Chennai, “A” Bench

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M.DURAISWAMY, J.

and R. HEMALATHA, J.

mkn

T.C.A.No.337 of 2016

20.07.2021

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