Madras High Court
Principal Commissioner Of Income ... vs M/S. K.V. Education Trust on 15 November, 2021
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 15.11.2021
CORAM :
THE HON'BLE MR. JUSTICE R. MAHADEVAN
AND
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
and CMP.Nos. 17344, 17973, 17345, 17339, 17346 and 17337 of 2021
Principal Commissioner of Income Tax (Exemptions)
Corporate Circle -2 (2)
Nungambakkam,
Chennai - 600 034.
...Appellant in all Cases
-vs-
M/s. K.V. Education Trust,
Cheruppaloor,
Kulasekaram,
Kanyakumari - 629 161.
PAN: AAATK4688A ...Respondent in all Cases
Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961
against the common order dated 31.01.2018 passed by the Income Tax
Appellate Tribunal, Madras “D” Bench, in I.T.A.Nos.1709, 1710, 1711, 1712,
1713, 1714 and 1715 /CHNY/2010.
For Appellant : Mr.Karthik Ranganathan (in all cases)
For Respondent : Mr. Narayanasamy (in all cases)
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
COMMON JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
These tax case appeals have been filed by the appellant / Revenue,
calling in question the correctness of the order dated 31.01.2018 passed by the
Income Tax Appellate Tribunal, 'D' Bench, Chennai, in I.T.A.Nos.1709, 1710,
1711, 1712, 1713, 1714 and 1715 /CHNY/2010, relating to the assessment
years 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09, by
raising the following substantial questions of law:-
(i) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in deleting the addition
made by the AO on account of less income shown in return filed
U/s 153A in comparison to the original return filed by allowing
the benefit of telescoping to the assessee despite the fact that no
proper reconciliation was furnished to the AO?
(ii) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in deleting the addition
made by the AO on account of difference in cash balance shown
in return filed U/s 153A in comparison to the original return filed
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
by allowing the benefit of telescoping of the same with the
building fund despite the fact that no proper reconciliation was
furnished to the AO?
(iii) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in deleting the addition
made by the AO on account of Bank Excess claim by holding that
the books of account were examined by the CIT (A) despite the
fact that the books of account were not produced before the AO
during assessment as well as remand proceedings to examine
assesse's claim and hence this is in violation of the principles of
natural justice?
(iv) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in deleting the addition
made by the AO on account of disallowance of general and
administrative expenses by holding that the books of account
were examined by the CIT (A) despite the fact that the books of
account were not produced before the AO during assessment as
well as remand proceedings to examine the assesse's claim and
hence this is in violation of the principles of natural justice?
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
(v) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in deleting the addition
made by the AO on account of investment in fixed assets by
holding that the books of account were not produced before the
AO during assessment as well as remand proceedings to examine
the assesse's claim and hence this is in violation of the principles
of natural justice?
(vi) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in upholding the
CIT(A)'s decision of deletion of amount added for reduction in
fee receivable shown in original returns and those filed pursuant
to notice issued u/s 153A of the IT Act even though no
reconciliation was provided by the assessee?
(vii) Whether on the facts and in the circumstances of the
case and in law, the Hon'ble ITAT is right in deleting the addition
made by the AO on account of capitation fee by allowing
telescoping of the same with building fund despite the fact that no
proper reconciliation was furnished to the AO?
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
2. When the matters were 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
these appeals 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 appeals, wherein, the tax effect is said
to be less than the monetary limit imposed, are dismissed as withdrawn,
keeping open the substantial questions of law for determination in appropriate
cases. No costs. Consequently, connected miscellaneous petitions are closed.
[R.M.D,J.] [M.S.Q, J.]
15.11.2021
Internet : Yes
Index : Yes / No
av
https://www.mhc.tn.gov.in/judis
Tax Case Appeal Nos.506, 511, 512, 516, 518, 519 & 520 of 2021
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
av
To
1. Principal Commissioner of Income Tax (Exemptions)
Corporate Circle -2 (2)
Nungambakkam,
Chennai - 600 034.
2. The Income Tax Appellate Tribunal,
Madras “D” Bench.
3.The Assistant Commissioner of Income Tax,
Central Circle I, Madurai.
4.The Commissioner of Income Tax (Appeals)-II
Madurai.
Tax Case Appeal Nos.506, 511, 512,
516, 518, 519 & 520 of 2021
and
CMP.Nos. 17344, 17973, 17345, 17339,
17346 and 17337 of 2021
15.11.2021
https://www.mhc.tn.gov.in/judis
