Commissioner Of Income Tax vs M/S.The Willingdon Charitable Trust
2025 Latest Caselaw 683 Mad

Madras High Court

Commissioner Of Income Tax vs M/S.The Willingdon Charitable Trust on 1 July, 2025

                                                                                       T.C.A. No.111 of 2016

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 01.07.2025

                                                           CORAM

                                    THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE
                                                              AND
                                     THE HON'BLE MR.JUSTICE SUNDER MOHAN
                                           Tax Case Appeal No.11 1 of 2016


                     Commissioner of Income Tax
                     Chennai.                                                         .. Appellant

                                                               -vs-

                     M/s.The Willingdon Charitable Trust,
                     No.603, 6th Floor, Rani Seethai Hall,
                     Chennai 600 006.                                                 .. Respondent

                     Prayer: Appeal filed under Section 260A of the Income Tax Act, 1961,
                     against the order dated 15.05.2015 passed in ITA No.1044/Mds/2014 on
                     the file of Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai for
                     the Assessment Year 2009-10.


                     For Appellant            :         Ms.V.Pushpa
                                                        Stdg. Counsel

                     For Respondent            :        Mr.A.S.Sriraman

                                                           *****



                     Page 1 of 4




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                                                                                            T.C.A. No.111 of 2016




                                                              JUDGMENT

(Judgment of the Court was delivered by the Hon'ble Chief Justice)

Both counsels are ad idem that the amount involved is only

Rs.1,84,10,624/-, which is less than Rs.2 crores threshold given in Circular

No.9/2024, for filing/pursuing an appeal in High Court.

2. Ms.Pushpa submitted that the origin of the impugned order is an

order passed under Section 263 of the Income Tax Act, 1961 and therefore,

would fall under the exceptions given in Circular No.5/2024.

3. We agree with Mr.Sriraman that in this case, exceptions would not

fall under the exemptions, though the origin is under Section 263 of the

Act, because Clause 3.1(f) of the Circular No.5/2024 starts with the words

"Where the tax effect is not quantifiable or not involved..." In the case at

hand, the tax effect has been quantified as Rs.1,84,10,624/-.

4. Moreover, though it refers to order passed under Section 263 of

the Act, it again says that the reference to cases involving sections referred

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here, where it is not possible to quantify the tax effect or the tax effect is

not involved, is for the purpose of illustration only. Therefore, this

exception would not apply where the tax effect is quantifiable and in this

case, it has already been quantified. Therefore, this would fall under the

'less than tax effect' cases.

5. Moreover, the Circulars issued under Section 268A of the Act itself

provides that it is a step towards management of litigation and the Board

has been revising the monetary limits for filing of appeal from time to time.

Circular No.5/2024 also states that monetary limits shall be applicable to

all cases, including those relating to TDS/TCS under the Act, with the

exception where the tax effect is not quantifiable or not involved.

Therefore, since in the present case the tax effect is quantified, in our view,

it would not be covered under the exception.

Appeal is, accordingly, disposed of. No costs.

                                                (K.R.SHRIRAM, CJ.)                           (SUNDER MOHAN, J.)
                                                                        01.07.2025

                     Index                    : Yes/No






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                     Neutral Citation   : Yes/No
                     sra

                                                                                      The Hon'ble Chief Justice
                                                                                                   and
                                                                                           Sunder Mohan, J.


                                                                                                           (sra)
                     To

                     1. The Income Tax Appellate
                         Tribunal Madras 'C' Bench, Chennai.

                     2. The Commissioner of Income Tax,
                        Chennai.




                                                                                        T.C.A. No.11 1 of 2016




                                                                                                    01.07.2025







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