Commissioner Of Income Tax (Exemptions)Chennai v. Sri.narasimhan Arakkattalai16-18 Kuppusamy Padmavathy Nagarramapuramchennai – 600 089

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 10.12.2018 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.892 of 2009 Commissioner of Income Tax (Exemptions)Chennai. .... Appellant Vs. Sri.Narasimhan Arakkattalai16-18 Kuppusamy Padmavathy NagarRamapuramChennai – 600 089..... Respondent 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 31.03.2009 made inITA No.1339/Mds/2008. Against the Order of the Director ofIncome Tax (Exemption), Nungambakkam, Chennai dated 15.04.2008and made in DIT(E) No.2(791) 05-06. For Appellant : Mr.J.Narayanasamy Sr.Standing Counsel For Respondent : Mr.T.Vasudevan J U D G M E N T (Delivered by DR.VINEET KOTHARI,J) The present Appeal has been filed by the Revenue raisingthe following substantial question of law under Section 260A ofthe Income Tax Act arising from the order of the Income TaxAppellate Tribunal dated 31.03.2009 remanding the case back tothe Assessing Authority for re-considering the case of therespondent/assessee Sri.Narasimhan Arakkattalai, as to whetherthe said Trust would remain entitled to exemption under Section80G of the Income Tax Act. 'Whether on the facts and circumstances of thecase, the Tribunal was right in holding that if theexpenditure on religious purposes is less than 5% ofthe total income, the trust would be eligible for https://hcservices.ecourts.gov.in/hcservices/ exemption under section 80G , even though the assesseeis a religious trust registered under section 12AA ofthe Act?' 2. The relevant portion of the order of the Tribunal,which is Paragraph 8, is quoted below for ready reference. '8. On going through the order of the ld. DIT(Exemptions), it can be seen that he has notconsidered sub-section (5B) of section 80G whiledenying the benefit of exemption under section 80G ofthe Act. So, it needs further consideration from theend of ld. DIT(Exemptions), particularly, in the lightof sub-section (5B) of section 80G. In thesecircumstances, we set aside the order of the DIT(Exemptions) and restore back to his file, forconsidering the matter afresh after taking intoaccount the circumstances as shown in the sub-section(5B) of section 80G.' 3. In view of the case having been only remanded beforethe concerned Authority, we are satisfied that the question oflaw raised before this Court, on which appeal has been admittedby the co-ordinate Bench of this Court dated 17.09.2009, neednot be answered at this stage and we leave it open to decide thecase again in accordance with the remand order of the Tribunal. 4. With these observations, the Tax Case (Appeal) isdisposed of. No costs. Sd/-Assistant Registrar(CS-IV)//True Copy// Sub Assistant Registrar slTo 1.The Direcor of Income Tax, (Exemption), Chennai – 34. 2.The Deputy Assistant Registrar, Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai. +1cc to Mr.J.Narayanaswamy, Advocate, S.R.No. 85973 MP(CO)GN(08/01/2019)