Madras High Court
Principal Commissioner Of Income ... vs M/S.Adhiparasakthi Charitable on 8 August, 2022
TCA.No.562 of 2018
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.08.2022
CORAM
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A.No. 562 of 2018
Principal Commissioner of Income Tax
Central 2
No.108, Mahatma Gandhi Road,
Chennai 600 034 .. Appellant
Versus
M/s.Adhiparasakthi Charitable
Medical Educational and Cultural Trust,
GST Road, Cheyyur,
Melmaruvathur,
Kanchipuram District .. Respondent
Tax Case Appeal filed under Section 260 A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal Madras “C”
Bench, Chennai dated 29.3.2017 passed in ITA.No.2214/Mds/2016 for the
assessment year 2012-13.
For Appellant :Mr.Karthik Ranganathan
Standing Counsel
For Respondent : Mr.Sriram
For Mr.Sridhar
1/4
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TCA.No.562 of 2018
JUDGMENT
(Judgment of the Court was delivered by R. MAHADEVAN, J.)
This Tax Case Appeal has been filed by the appellant / revenue,
questioning the correctness of the order dated 29.03.2017 passed by the
Income Tax Appellate Tribunal Madras “C” Bench Chennai in
ITA.No.2214/Mds/2016 for the assessment year 2012-13, on the following
substantial questions of law;
' 1.Whether the Tribunal is correct in law in holding that
profit arising out of sale of text books to the students would
be part of profit of Educational Institutions and therefore
the provisions of section 2(15) of the Income Tax Act are
not applicable, without considering the profit earning
intention of such activity and quantum of profit earned by
the Trust?
2. Whether the Tribunal is correct in law in holding that
the sale of text books by the Trust to the students does not
constitute Commercial Activity but part of Educational
Activity within the meaning of proviso to Section 2(15) of
the Income Tax Act, when the Assessee Trust has made huge
https://www.mhc.tn.gov.in/judis
TCA.No.562 of 2018
profit out of 43.42% on sale of text books under the name of
'Charitable Trust”?
2. When the matter was 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
this appeal 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 appeal, wherein, the tax effect is said
to be less than the monetary limit imposed, is dismissed as withdrawn, keeping
open the substantial questions of law for determination in an appropriate case.
No costs.
[R.M.D,J.] [M.S.Q., J.]
08.08.2022
msr
Index : Yes / No
https://www.mhc.tn.gov.in/judis
TCA.No.562 of 2018
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
msr
To
1. Principal Commissioner of Income Tax
Central 2
No.108, Mahatma Gandhi Road,
Chennai 600 034.
2. The Assistant Commissioner of Income Tax,
Central Circle 2 (2), Chennai.
3. The Commissioner of Income Tax, Appeals-18
Chennai-34
4. The Income Tax Appellate Tribunal Madras “C” Bench,
Chennai
T.C.A.No. 562 of 2018
08.08.2022
https://www.mhc.tn.gov.in/judis
