Chennai v. Alumni Club Anna Universityboat Club Road, Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE DR. JUSTICE VINEET KOTHARIandTHE HON'BLE DR. JUSTICE ANITA SUMANTH The Director of Income Tax (Exemption) Chennai. .. Appellant Vs .. Respondent Alumni Club Anna UniversityBoat Club Road, Chennai. Prayer : Tax Case (Appeal) is filed under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras 'A' Bench, dated 20.01.2006 passed inITA No.1726/Mds/2002 for Assessment year 1995-96, against theorder of the Assistant Director of Income Tax (Exemptions)-I,Chennai dated 27/03/2002 made in PAN/GIR.NO.1701-A, against theorder of the Commissioner of Income Tax (Appeals)-XI, 121,Mahatma Gandhi Salai, Chennai-600 034 made in ITANo.24/2002-03 dated 07/08/2002. For Appellant : Mr.Karthik Ranganathan Sr.Standing Counsel For Respondent: Mr.V.S.Jayakumar JUDGMENT (Judgment of the Court was delivered by DR.VINEET KOTHARI, J.) Heard the learned counsel for the appellant as well as therespondent. 2. The Revenue preferred this appeal challenging the orderpassed by the Income Tax Appellate Tribunal Madras 'A' Bench,dated 20.01.2006 passed in ITA No.1726/Mds/2002 for Assessmentyear 1995-96. https://hcservices.ecourts.gov.in/hcservices/ 3. The above appeal has been admitted on 18.11.2009 on thefollowing substantial questions of law : “(1) Merely because a trust had itregistered under section 12A of the IncomeTax Act even if its activities were foundwholly or mostly to be non charitable wouldit be still entitled for exemptionautomatically under section 11 of the IncomeTax Act? (2) If the activities of the trust arelimited only to a certain category of peoplewhich cannot be construed as a class ofpublic but only as specified category andthe benefits even according to the rules andregulations of bye-laws of the trust onlyreach to such of those members and theirfamily would it be still entitled forexemption under section 11 of the Income TaxAct?” 4. It may not be necessary for us to answer the abovesubstantial questions of law, as the monetary limit in thisappeal is lesser than the amount fixed by the circularinstructions issued by the Central Board of Direct Taxes. ADivision Bench of this Court had an occasion to consider theeffect of those circulars in TCA.No.395 of 2018 dated 24.7.2018,the relevant portions of which are as follows : “4. Further, it is relevant to notethat by Circular No.3/2018, dated 11.7.2018,monetary limit has further been increasedand appeals be maintainable before the HighCourts. It has been increased toRs.50,00,000/-. Hence, viewed from anyangle, this appeal could not have beenfiled. 5. Thus, by applying the above Circularissued by the CBDT, this appeal ought not tohave been filed by the Revenue and hence,for that reason, this tax case appeal isdismissed and the substantial questions oflaw, framed for consideration, are leftopen.” 5. In the light of the above, the above appeal isdismissed. No costs. The substantial question of law is leftopen for consideration. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant RegistrarslTo1.The Income Tax Appellate Tribunal, Madras 'A' Bench.2.The Commissioner of Income Tax (Appeals)-XI, 121, Mahatma Gandhi Salai, Chennai-600 034.3.The Assistant Director of Income Tax (Exemptions)-I, Chennai.+1cc to Mr.V.S.Jayakumar, Advocate Sr.82066T.C.(A).No.1147 of 2009nm[co]srg 02/01/2019