Commissioner Of Income Tax, Chennai v. M/S.all India Skin & Hide Tanners & Merchants Association

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 04.12.2019CORAM :THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN andTHE HONOURABLE MR.JUSTICE P.VELMURUGANT.C.A.Nos.186 to 188 of 2018andC.M.P.Nos.3200 & 3201 of 2018 Commissioner of Income Tax,Chennai. ... Appellant(in all the appeals)Vs M/s.All India Skin & Hide Tanners & Merchants Association,43/53, Raja Muthiah Road, Periamet, Chennai 600 003.PAN: ... Respondent(in all the appeals) PRAYER in TCA.No.186 of 2018: Appeal under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras “B” Bench, dated 23.09.2016 passedin ITA.No.1240/Mds/2016 This appeal preferred against thecommissioner of Income Tax (Appeals)17, chennai 34.order dated29.11.2006 made in ITA.No.37/CIT(A)-17/13-14,ITA.NO.38/CIT(A)17/14-*15,ITA /CIT(A)17 15-16 for the Assessment Years 2010-11,2011-12,2012-13 and this appeal preferred against theDeputy Director of income Tax (Exemptions) II,(i/e) chennaiorder dated 18.03.2013 made in PAN: order dated11.03.2014 made in PAN and order dated 19.03.2015made in PAN: for the Assessment year 2010-2011,2011-2012,2012-2013. PRAYER in TCA.No.187 of 2018: Appeal under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras “B” Bench, dated 23.09.2016 passedin ITA.No.1241/Mds/2016.This appeal preferred against thecommissioner of Income Tax (Appeals)17, chennai 34.order dated29.11.2006 made in ITA.No.37/CIT(A)-17/13-14,ITA.NO.38/CIT(A)17/14-*15,ITA /CIT(A)17 15-16 for the Assessment Years 2010-11,2011-12,2012-13 and this appeal preferred against theDeputy Director of income Tax (Exemptions) II,(i/e) chennaiorder dated 18.03.2013 made in PAN: order dated11.03.2014 made in PAN and order dated 19.03.2015made in PAN: for the Assessment year 2010-2011,2011-2012,2012-2013. PRAYER in TCA.No.188 of 2018: Appeal under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras “B” Bench, dated 23.09.2016 passed in ITA.No.1242/Mds/2016.This appeal preferred against thecommissioner of Income Tax (Appeals)17, chennai 34.order dated29.11.2006 made in ITA.No.37/CIT(A)-17/13-14,ITA.NO.38/CIT(A)17/14-*15,ITA /CIT(A)17 15-16 for the Assessment Years 2010-11,2011-12,2012-13 and this appeal preferred against theDeputy Director of income Tax (Exemptions) II,(i/e) chennaiorder dated 18.03.2013 made in PAN: order dated11.03.2014 made in PAN and order dated 19.03.2015made in PAN: for the Assessment year 2010-2011,2011-2012,2012-2013. For Appellant :Mr.J.Narayanaswamy (in all the appeals)Senior standing counsel (Judgment of the Court was delivered by N.KIRUBAKARAN, J) These Tax Case Appeals have been preferred by the Revenueagainst the order dated 23.09.2016 passed in ITA.No.1240 to1242/Mds/2016 on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench for the assessment years 2010-11to 2012-13. 2.The impugned order is filed by the Revenue aggrieved bythe orders of the CIT(A), dated 29.01.2016 in ITA Nos.37, 38 &11/CIT (A)-17/13-14/14-15/15-16 under Section 143(3) r.w.s 250(6) of the Income Tax Act, 1961, where the Tribunal rejectedthe plea of the Revenue and dismissed the Appeals. For Appellant :Mr.J.Narayanaswamy (in all the appeals)Senior standing counsel (Judgment of the Court was delivered by N.KIRUBAKARAN, J) These Tax Case Appeals have been preferred by the Revenueagainst the order dated 23.09.2016 passed in ITA.No.1240 to1242/Mds/2016 on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench for the assessment years 2010-11to 2012-13. 2.The impugned order is filed by the Revenue aggrieved bythe orders of the CIT(A), dated 29.01.2016 in ITA Nos.37, 38 &11/CIT (A)-17/13-14/14-15/15-16 under Section 143(3) r.w.s 250(6) of the Income Tax Act, 1961, where the Tribunal rejectedthe plea of the Revenue and dismissed the Appeals. 3.These Appeals are admitted on the following substantialquestion of law :“(i)Whether on the facts and in the circumstances ofthe case, the Hon'ble ITAT was right in law inholding that the Society is eligible for exemptionu/s.11 of the I.T.Act, in complete disregard to thefacts of the case and the provisions of newlyinserted provisos of Section 2(15) of the I.T. Act?(ii)Whether on the facts and in the circumstances ofthe case, the Hon'ble ITAT was right in law inholding that the activities of the assessee societyare governed under “principles of mutuality” eventhough the Society is registered u/s.12AA of theIncome Tax Act as a “charitable entity” and has beenclaiming that status all along, more so when KeralaHigh Court in the case of M/s.Investors Club Trichurvs. CIT 318 ITR 427 (Ker.) has clearly held that a“charitable institution” cannot raise the “plea ofmutuality”?(iii)Whether on the facts and in the circumstances ofthe case and in law, the order of the Hon'ble ITAT was not against principle of “judicial consistency”in as much as it was passed in disregard of thefindings of its earlier order in ITA No.2749, 2750and 2751/Mds/1994 for A.Ys.1998-99, 1990-91 & 1991-92, where a clear finding had been given that theassessee's activities are in the nature of“advancement of objects of general public utility”and such decision had already reached finality?" 4.Mr.J.Narayanaswamy, learned Senior Standing Counselappearing on behalf of the appellant would submit that the taxeffect in these cases are less than Rs.1 crore and is coveredby Circular No.17/2019 dated 08.08.2019 issued by theDirector, Central Board of Direct Taxes, Department ofRevenue, Ministry of Finance, Government of India, Delhi. Asper the said circular, the monetary limit to file an appealbefore the High Court is fixed at Rs.1 crore. In these cases,tax effect is less than Rs.1 crore and therefore, these caseshave to be dismissed. 5.This Court perused the circular dated 08.08.2019 andParagraph No.2 of the said Circular, which prescribes monetarylimit for filing appeal is usefully extracted as follows: 2.As a step towards further management oflitigation, it has been decided by the Board thatmonetary limits for filing of appeals in income-taxcases be enhanced further through amendment in Para3 of the Circular mentioned above and accordingly,the table for monetary limits specified in Para 3of the Circular shall read as follows: 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, these Tax Case Appealsare dismissed on account of tax effect. However, thesubstantial questions of law framed is left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decidedon merits. No costs. Consequently, connected MiscellaneousPetitions are closed. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar saiTo1.THE COMMISSIONER OF INCOME TAX,CHENNAI. 2.INCOME TAX APPELLATE TRIBUNAL 'B' BENCH,CHENNAI. 6.In view of the submissions made by the learned counselappearing on behalf of the appellant and also in view of theCircular No.17/2019 dated 08.08.2019 issued by the Director,Central Board of Direct Taxes, Delhi, these Tax Case Appealsare dismissed on account of tax effect. However, thesubstantial questions of law framed is left open. In theevent the tax effect is above the limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decidedon merits. No costs. Consequently, connected MiscellaneousPetitions are closed. Sd/- Assistant Registrar(CS) //True Copy// Sub Assistant Registrar saiTo1.THE COMMISSIONER OF INCOME TAX,CHENNAI. 2.INCOME TAX APPELLATE TRIBUNAL 'B' BENCH,CHENNAI. 3.THE DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS) II,(I/E) CHENNAI.4.THE COMMISSIONER OF INCOME TAX (APPEALS)17, CHENNAI 34. +1cc to Mr.J.Narayanaswamy , Advocate SR.No. 101293T.C.A.Nos.186 to 188 of 2018 A.SK(30/01/2020)