Madras High Court
Principal Commissioner Of vs M/S.The Activists For Social on 8 March, 2021
TCA.No.191 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 08.03.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
Tax Case Appeal No.191 of 2021
Principal Commissioner of
Income Tax (Exemptions),
Exemption Ward, Trichy. ...Appellant
Vs
M/s.The Activists for Social
Alternative Trust,
No.2-A, Sathiyam Illam,
Alli Street, Annamalai Nagar,
Trichy - 620 018. ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the
order dated 13.10.2017 made in ITA.No.395/Mds/2015 on the file of the
Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year
2011-12.
For Appellant: Mr.J.Narayanasamy, SSC
For Respondent: Mr.A.S.Sriraman
1/4
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TCA.No.191 of 2021
JUDGMENT
(Delivered by T.S.Sivagnanam,J)
This appeal, filed by the Revenue, is directed against the order
dated 13.10.2017 made in ITA.No.395/Mds/2015 on the file of the Income
Tax Appellate Tribunal, Madras 'B' Bench (for brevity, the Tribunal) for the
assessment year 2011-12.
2. The appellant-Revenue has raised the following substantial
questions of law for consideration:
"1. Whether on the facts and in the
circumstances of the case and in law, the Hon'ble
ITAT is allowing the assessee's claim of
Rs.5,77,86,018/- as corpus donation particularly
when there is no specific direction from the
donors regarding quantum of contribution to be
part of the corpus of the trust or institution as
requires u/s 11(1)(d) of the Income Tax Act,
1961?
2. Whether on the facts and in the
circumstances of the case and in law, the ITAT
was correct in holding that an amount of
Rs.5,77,86,017/- received by the assessee out of
total receipt was to be treated as corpus donation,
as the narration on the donation receipts stated
that part of the amount may be used for the
corpus of the trust, not appreciating that absence
of quantification of contribution forming part of
corpus may lead to manipulation of Income &
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TCA.No.191 of 2021
Expenditure, and in ascertaining exact income
exempt u/s 11 and 12 of the Act? and
3. Whether on the facts and in the
circumstances of the case and in law, the ITAT is
correct in not adjudicating the ground raised by
the department on merit and in not interfering
with the order of the Ld. CIT(A) who held that the
A.O. is not justified in adding an amount of
Rs.42,25,283/- in case of the assessee as the same
has been derived from "Silver Jubilee Programme
Fund" under receipts and accordingly shown as
unutilised amount separately in the balance
sheet?"
3. We have heard Mr.J.Narayanasamy, learned Senior Standing
Counsel for the appellant-Revenue and Mr.A.S.Sriraman, learned counsel
appearing for the respondent.
4. The learned Senior Standing Counsel appearing 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.
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TCA.No.191 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
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5. In the light of the said submissions, the above tax case appeal is
dismissed on account of the low tax effect. The substantial question of law
framed is left open. In the event the tax effect is above the threshold limit
fixed in the said circular, liberty is granted to the Revenue to file a petition
before this Court to restore the appeal to be heard and decided on merits. No
costs.
(T.S.S.,J.) (R.N.M.,J.)
08.03.2021
Index: Yes/No
Internet:Yes/No
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To
1. The Income Tax Appellate Tribunal,
'B' Bench, Chennai.
2. The Principal Commissioner of
Income Tax (Exemptions),
Exemption Ward, Trichy.
TCA.No.191 of 2021
https://www.mhc.tn.gov.in/judis/
