Commissioner Of Income Tax Central Iiichennai v. M/S. Vel Trustshanti Sudhaold

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22.04.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN Tax Case Appeal No.1330 of 2009 Commissioner of Income Tax Central IIIChennai... Appellant /Appellant Vs. M/s. Vel TrustShanti SudhaOld No. 24, New No. 38, ABM AvenueChennai – 600 028... Respondent/Respondent Prayer:- Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai, dated 08.05.2009 made inITA No.1695/Mds/2008. Against the order of the Commissioner of Income Tax(Appeals)VI, Chennai-34, made in ITA.No.158/06-07 dated29.02.2008 agaisnt the order of the Assistant Commissioner ofIncome Tax, Circle-II, Chennai-600 034 made in PAN.No.AAATV4164Adated 19.09.2006 for the Assessment Year 2001-02. For Appellant : Mr.J.Narayanasamy Senior Standing CounselFor Respondent : Mr.G.Baskar Assisted by Sai Lakshmi Valli This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, by raising the following substantialquestion of law: "(i) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in holding that the developmentfee collected as part of the fee from the studentsconstituted capital receipts and did not have thecharacter of income on the basis of the assessee'sclaim that such development fees were used formeeting capital expenditure?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar vsg To 1.The Income Tax Appellate Tribunal,Madras 'B' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals)VI,Chennai-34. 3.The Assistant Commissioner of Income Tax,Circle-II, Chennai-600 034.Circle-II, Chennai-600 034. +1cc to Mr.G.Baskar, Advocate, S.R.No.38421+1cc to Mr.J.Narayanasamy, Advocate, S.R.No.38121 NMI(CO)CS/16/07/2019 TCA.No.1330 of 2009