Commissioner Of Income Tax, Central Circle, Chennai v. M/S.sengamala Thayar Educational Trust

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 24.08.2021 CORAM : THE HON'BLE MR. JUSTICE T.S. SIVAGNANAMAND THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.No.959 of 2013 Commissioner of Income Tax,Central Circle,Chennai.... AppellantVs. M/s.Sengamala Thayar Educational Trust,No.1, Main Road,Sundarakottai Post,Mannargudi.... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “C” Bench, dated 04.04.2013 in I.T.A.No.1741/Mds/2010,Assessment Year 1998-1999 as against the order dated 21.06.2010of the Commissioner of Income Tax (Appeals) II in ITA No.107/06-07 and as against the assessment order dated 28.03.2006 by theJoint Commissioner of Income Tax, Chennai. For Appellant : Mr.T.R.Senthil KumarSenior Standing Counseland Mrs.K.G.Usha RaniStanding CounselFor Respondent: Mr.T.Vasudevan J U D G M E N T (Judgment was delivered by T.S. SIVAGNANAM, J.) We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Mrs.K.G.Usha Rani, learned Standing Counsel for theappellant/Revenue and Mr.T.Vasudevan, learned counsel for therespondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (“the Act” for brevity) is directed againstthe order dated 04.04.2013 made in I.T.A.No.1741/Mds/2010 on thefile of the Income Tax Appellate Tribunal, Chennai, “C” Bench https://hcservices.ecourts.gov.in/hcservices/ (“the Tribunal” for brevity) for the Assessment Year 1998-1999.3.The appeal was admitted on 13.02.2014 on the followingsubstantial questions of law: “1.Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal is rightin confirming the earning of huge agriculturalincome based on certificate for mere ownership ofland without verifying the genuineness of theagricultural operations, detailed accounts andvouchers? 2.Whether on the facts and circumstances of thecase, the Income Tax Appellate Tribunal is right inholding that the assessee is eligible for exemptionu/s.10(22) of the Act when the assessee collect feesand receives donation with the purpose of makingprofit?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the Low Tax Effect in terms of Circular No.17/2019dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar(CS II) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai, “C” Bench https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax, Central Circle, Chennai. 3.The Commissioner of Income Tax Appeals-II, Chennai-34. Chennai-34. 4.The Joint Commissioner of Income Tax, Chennai. +1cc to Mr.T.R.Senthil Kumar, Sr St. Counsel Sr No.42217 SVI(CO)PR (21/09/2021) T.C.A.No.959 of 2013