Commissioner Of Income Tax vs M/S.Mahendra Educational Trust
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Madras High Court

Commissioner Of Income Tax vs M/S.Mahendra Educational Trust on 23 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                   T.C.A.No.304 of 2022

                             IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 23.10.2024

                                                        CORAM

                                    THE HON'BLE MR.JUSTICE R.SURESH KUMAR
                                                     AND
                                     THE HON'BLE MR.JUSTICE C.SARAVANAN

                                           Tax Case Appeal No.304 of 2022


                   Commissioner of Income Tax
                   Chennai                                                         ....   Appellant

                                                           Vs.

                   M/s.Mahendra Educational Trust
                   Kalipatti Post, Attayampatti Via
                   Tiruchengode, Namakkal 637 501
                   PAN : AAAAM2491C                                                ....   Respondent
                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, 'A' Bench Chennai,
                   dated 11.02.2021 in ITA.No.126/Chny/2019.


                                   For Appellant       : Mrs.V.Pushpa
                                                         Senior Standing Counsel
                                   For Respondent      : Mr.N.V.Balaji

                                                    JUDGMENT

(Delivered by R.SURESH KUMAR, J.)

This Tax Case Appeal has been filed by the Revenue calling in question

the correctness of the order passed by the Income Tax Appellate Tribunal,

Chennai by raising the following substantial questions of law:

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1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that there is no reason to deny exemption under Section 11 of the Income Tax Act, 1961 to the assessee Trust, when there is violation under Section 13(1)(c) read with Section 13(3) as well as Section 13(3)(h) of the Income Tax Act, 1961?

2. Whether on the facts and circumstances of the case, the order of the Tribunal is not perverse on facts and right in law in holding that the transfer of trust funds to unregistered trust and business concern in which assessee trustees are the directors/trustees and also to founder trustee is not barred as per the Section 13(1)(c)(ii) read with 13(3)(a)(e) as well as 13(3)(h) warranting denial of exemption under Section 11 in entirety?

3. Whether on the facts and circumstances of the case, the order of the Tribunal is not perverse on facts, and right in law in holding above said specified interested persons were not benefitted directly or indirectly by such transfer of trusts funds to them?

2. It is brought to our notice by the learned Standing Counsel for the

appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of

2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit

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imposed and therefore, the appeal can be disposed of, keeping the substantial

questions of law raised in this appeal open for adjudication at a later point of

time.

3. Recording the aforesaid submission made by the learned Standing

Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low

tax effect, keeping open the substantial questions of law for adjudication at

appropriate stage. No costs.

                                                                    (R.S.K.,J.)     (C.S.N.,J.)
                                                                          23.10.2024
                   NCS : Yes/No
                   KST

                   To

The Income Tax Appellate Tribunal 'A' Bench, Chennai.

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R.SURESH KUMAR, J.

AND C.SARAVANAN, J.

KST

23.10.2024

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