Commissioner Of Income Tax-Iitiruchirapalli v. M/S. Saraswathi Educational Andhealth Trust,F

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED:. 15.11.2019 CORAM: THE HON'BLE MR.JUSTICE M. SATHYANARAYANAN&THE HONOURABLE MR.JUSTICE M. NIRMAL KUMAR Tax Case Appeal No.1168 of 2010 Commissioner of Income Tax-IITiruchirapalli... Appellant/Respondent Vs. M/s. Saraswathi Educational andHealth Trust,F-8, First Floor,Opp. to Bharathidasan University,Mathur, Pudukottai Main Road,Trichy.... Respondent/Appellant Appeal against the order of the Income Tax AppellateTribunal, Chennai “C” Bench, dated 19.3.2010 passed in ITANo.2436Mds/2007 in respect of the assessment year 1998-99 .This Appeal preferred against the Commissioner of Income Tax(Appeals) Tiruchirapalli order dated 11.06.2007 made inI.T.A/151/2004-2005 for the Assessment year 1998-1999 andpreferred against the order of the Assistant Commissioner ofIncome Tax, Circle IV, Tiruchirapalli order dated 31.03.2004made in P.A. No/GIR No.AACTS7491E and preferred against theDeputy Commissioner of Income Tax Range IV, Tiruchirapalli orderdated 07.10.2002 made in I.T.A. 48/MDS/2002 for the Assessmentyear 1998-1999 and preferred against the Commissioner of IncomeTax (Appeals)XI Chennai 34 order dated 19.12.2001 made in I.T.A.No. 82/2001-2002 for the Assessment year 1998-1999 and preferredagainst the Deputy Director of Income Tax (Exemptions) I,Chennai order dated 28.03.2001 made in PAN/GIR No. 1899-s forthe Assessment year 1998-1999. For Appellant :Mr.K. Subramaniam For Respondent :Mr.K. Prasad J U D G M E N T (Judgment of the Court was delivered by M.Sathyanarayanan, J.) The respondent Trust who was granted exemption underSection 80G of the Income Tax Act from 2.2.1998 to 31.3.1999,had filed its return on Income Tax pertains to the assessmentyear 1998-1999 on 5.4.1999 admitting 'Nil' income and claimedtax exemption under Section 11 of the Act. 2. The Assessing Officer after giving opportunity to theassessee and on perusal and consideration of the records, passedan order of assessment dated 28.3.2001, highlighting that thetotal tax payable by the respondent Trust is Rs.56,96,842/-. 3. The assessee aggrieved by the order of assessment filedan appeal before the Commissioner of Income Tax (Appeals) XIChennai-33, who vide order dated 19.12.2001 has dismissed theappeal. 4. The assessee filed further appeal before the IncomeTax Appellate Tribunal “C” Bench, Chennai and the tribunal, videorder dated 7.10.2002 has remanded the matter to the AssessingOfficer. On remand, the Assessing Officer, on perusal ofrecords and providing opportunity, has passed an order dated31.3.2004 holding that the total tax payable by the respondentTrust is Rs.56,96,842. The respondent Trust filed an appealbeforetheCommissionerofIncomeTax(Appeals),Tiruchirappalli, who, vide order dated 11.06.2007, has dismissedthe appeal. The Respondent Trust filed further appeal beforethe Income Tax Appellate Tribunal, Chennai 'C' Bench, Chennai(in short 'ITAT'). The ITAT vide impugned order dated 19.3.2010allowed the appeal. The Revenue, aggrieved by the same,preferred the present appeal which was admitted on the followingsubstantial question of law by this Court, vide order dated24.1.2011. “Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in deleting the addition of Rs.1,07,41,811/-being the amount assessed as unexplained cashcredits u/s.68 of the Income Tax Act since theassessee could not prove the identity andcreditworthiness of the alleged donors and thegenuineness of the donations on the only ground theTrust was registered u/s.12A of the Income TaxAct?” 5. Learned Standing Counsel appearing for the appellant hasinvited the attention of this Court the Circular No.17/2019 in https://hcservices.ecourts.gov.in/hcservices/ “Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in deleting the addition of Rs.1,07,41,811/-being the amount assessed as unexplained cashcredits u/s.68 of the Income Tax Act since theassessee could not prove the identity andcreditworthiness of the alleged donors and thegenuineness of the donations on the only ground theTrust was registered u/s.12A of the Income TaxAct?” 5. Learned Standing Counsel appearing for the appellant hasinvited the attention of this Court the Circular No.17/2019 in https://hcservices.ecourts.gov.in/hcservices/ F.No.279/Misc.142/2007-ITJ (Pt.) issued by Ministry of Finance,Department of Revenue, Central Board Direct Taxes, JudicialSection, Government of India dated 8.8.2019 and would submitthat in the light of the said Circular, the monetary limit inrespect of High Court is enhanced to Rs.1,00,00,000/- and inthe instant case, the tax claimed from the respondent/assesseeis to the tune of Rs.56,96,842 which is less than the monetarylimit imposed and hence there is no necessity to answer thesubstantial question of law in this case. 6. In the result, the Tax Case Appeal is dismissed subjectto above observation. No costs. s/d- Assistant Registrar(CS VIII) True Copy Sub-Assistant Registrar To 1. The Income Tax Appellate Tribunal, Chennai “C” Bench Chennai “C” Bench 2.The Commissioner of Income Tax (Appeals) No.4,Williams Road, Cantonment, Tiruchirapalli 620 001.Williams Road, Cantonment, Tiruchirapalli 620 001. 3.The Assistant Commissioner of Income Tax, Circle IV,TiruchirapalliTiruchirapalli 4.The Deputy Commissioner of Income Tax Range IV, TiruchirapalliRange IV, Tiruchirapalli 5.The Commissioner of Income Tax (Appeals)121, Mahathma Gandhi RoadChennai 600 034.121, Mahathma Gandhi RoadChennai 600 034. 6.The Deputy Director of Income Tax(exemptions)I, Chennai(exemptions)I, Chennai +1 CC to Mr.J. Narayanasamy, Advocate sr 95682. +1 CC to M/s.B. Sumithra, Advocate sr 96503. +1 CC to Mr.K. Prasad, Advocate sr 95658. Tax Case Appeal No.1168 of 2010 KJ(CO)SP(21/01/2020)