Commissioner Of Income Taxcentral Iiichennai v. M/S. Vel Shree R. Rangarajandr. Sankuntala Rangarajan Educational Academyshanti Sudhaold

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 07.12.2021 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVANandTHE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQTax Case Appeal Nos. 684, 685, 686, 687, 688, 689, 690, 691,938, 939, 940, 941, 942, 943, 944 and 945 of 2010 Commissioner of Income TaxCentral IIIChennai ..Appellant/Petitioner in all Versus M/s. Vel Shree R. RangarajanDr. Sankuntala Rangarajan Educational AcademyShanti SudhaOld No.24, New No.38ABM AvenueChennai - 600 028..Respondent/Respondent in TCA Nos.684 to 688/2010 M/s.Vel Trust,Shanti SudhaOld No.24, New No.38ABM AvenueChennai - 600 028..Respondent in TCA Nos.689, 690, 691/2010 M/s. Krishnaveni Carbon Products (P) Ltd.,63/3, Athipalayam Road,Chinnavedampatti,Coimbatore. ..Respondent in TCA Nos.938, 939, 940/2010 M/s.Coimbatore Carbon8-A, Malumichampatti,Sidco Industrial Estate,Coimbatore..Respondent in TCA Nos.941, 942, 943/2010 Shri R.Ravichandran ..Respondent in TCA No.944/2010 R.Geethahttps://hcservices.ecourts.gov.in/hcservices/ ..Respondent in TCA No.945/2010 Appeal filed under Section 260-A of The Income Tax Act,1961 against the Order dated (i) 22.05.2009 passed in ITA No. 1732/Mds/2008(ii) 22.05.2009 passed in ITA No. 1733/Mds/2008(iii)22.05.2009 passed in ITA No. 1734/Mds/2008(iv) 22.05.2009 passed in ITA No. 1735/Mds/2008(v) 22.05.2009 passed in ITA No. 1736/Mds/2009(vi) 22.05.2009 passed in ITA No. 1737/Mds/2009(vii) 22.05.2009 passed in ITA No. 1738/Mds/2009(viii) 22.05.2009 passed in ITA No. 1739/Mds/2009(ix) 20.11.2009 passed in ITA No. 1809/Mds/2008(x) 20.11.2009 passed in CO No. 92/Mds/2009(xi) 20.11.2009 passed in ITA No. 1814/Mds/2008(xii) 20.11.2009 passed in ITA No. 1808/Mds/2008(xiii) 20.11.2009 passed in ITA No. 1810/Mds/2008(xiv) 20.11.2009 passed in ITA No. 1811/Mds/2008(xv) 20.11.2009 passed in ITA No. 670/Mds/2009(xvi) 20.11.2009 passed in ITA No. 174/Mds/2009 respectively on the file of the Income Tax Appellate Tribunal,Chennai 'C' Benchagainst the order dated 29.02.2008 (i) dated 29.02.2008 passed in ITA No.159/06-07(ii) dated 29.02.2008 passed in ITA No.162/06-07(iii) dated 29.02.2008 passed in ITA No.161/06-07(iv) dated 29.02.2008 passed in ITA No.160/06-07(v) dated 29.02.2008 passed in ITA No.245/06-07(vi) dated 29.02.2008 passed in ITA No.157/06-07(vii) dated 29.02.2008 passed in ITA No.40/06-07(viii) dated 29.02.2008 passed in ITA No.246/06-07respectively on the file of Commissioner of Income Tax Appeals-VI, Mahatma Gandhi Road, Chennai-34.(ix) dated 24.06.2008 passed in ITA No.95C/2007-08(x) dated 24.06.2008 passed in ITA No.95C/2007-08(xi) dated 24.06.2008 passed in ITA No.95C/2007-08(xii) dated 27.06.2008 passed in ITA No.98C/2007-08(xiii) dated 27.06.2008 passed in ITA No.99C/2007-08(xiv) dated 27.06.2008 passed in ITA No.100C/2007-08(xv) dated 04.02.2009 passed in ITA No.119C/2007-08(xvi) dated 07.11.2008 passed in ITA No.120C/2007-08respectively on the file of the Commissioner of Income TaxAppeals II, Coimbatore. against the order(i) dated 19.09.2006 vide PAN No. for the Assesmentyear 1999-2000(ii) dated 19.09.2006 vide PAN No. for the Assesmentyear 2000-2001(iii) dated 19.09.2006 vide PAN No. for the Assesmentyear 2001-2002(iv) dated 19.09.2006 vide PAN No. for the Assesmentyear 2002-2003https://hcservices.ecourts.gov.in/hcservices/(v) dated 31.12.2007 vide PAN No. for the Assesmentyear 2004-2005(vi) dated 19.09.2006 vide PAN No. for the Assesment year 2002-2003(vii) dated 17.03.2006 vide PAN No. for the Assesmentyear 2003-2004 (viii)dated 31.12.2007 vide PAN No.AAAA2308K for the Assesmentyear 2004-2005 on the file of Commissioner of Income Tax, Circle II, Chennai-34(ix) dated 31.12.2007 vide PAN No. for the Assesmentyear 2004-2005 (x) dated 31.12.2007 vide PAN No. for the Assesmentyear 2004-2005 year 2002-2003(vii) dated 17.03.2006 vide PAN No. for the Assesmentyear 2003-2004 (viii)dated 31.12.2007 vide PAN No.AAAA2308K for the Assesmentyear 2004-2005 on the file of Commissioner of Income Tax, Circle II, Chennai-34(ix) dated 31.12.2007 vide PAN No. for the Assesmentyear 2004-2005 (x) dated 31.12.2007 vide PAN No. for the Assesmentyear 2004-2005 (xi) dated 31.12.2007 vide PAN No. for the Assesmentyear 2004-2005(xii) dated 28.12.2007 vide PAN No. for the Assesmentyear 2003-2004(xiii)dated 26.12.2007 vide PAN No. for the Assesmentyear 2004-2005(xvi) dated 28.12.2007 vide PAN No. for the Assesmentyear 2005-2006(xv) dated 28.12.2007 vide PAN No. for the Assesmentyear 2000-2001(xvi) dated 28.12.2007 vide PAN No. for the Assesmentyear 2002-2003 respectively on the file of the Assistant Commissioner ofIncome Tax, Central Circle 1, Coimbatore. For Appellant:Mr.M.Saminathan Sr.Standing Counsel forM/s.K.G.Usha Rani Sr.Standing Counsel(TCA Nos.941 to 945/2010) For Respondent :Mr.Ashok Pathy for M/s.Pass Associates(TCA Nos.938 to 945/2010) COMMON JUDGMENT (Judgment of the Court was delivered by R. Mahadevan, J) These tax case appeals have been filed by theappellant/Revenue, calling in question the correctness of thevarious orders passed by the Income Tax Appellate Tribunal,Chennai. 2. When TCA Nos. 684 to 691 of 2010 were taken up forhearing on 13.12.2010, the following substantial question oflaw was raised by the appellant:-"Whether on the facts and in the circumstanceshttps://hcservices.ecourts.gov.in/hcservices/of the case, the Tribunal was right in holding thatthe development fee collected as part of the fee fromthe students constituted capital receipts and did not have the character of income, on the basis ofassessee's claim that such development fees were usedfor meeting capital expenditure." 3. When these appeals are taken up for considerationtoday, the learned counsel for the appellant/Revenue brought tothe notice of this court the Circular No.17/2019 dated08.08.2019 issued by the Central Board of Direct Taxes, wherein,it is stipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). It is alsosubmitted that the tax effect in these appeals is less than thethreshold limit. 4. In the light of the above submissions made by thelearned counsel for the appellant/Revenue, these appeals,wherein, the tax effect is said to be less than the monetarylimit imposed, are dismissed as withdrawn, keeping open thesubstantial question of law for determination in an appropriatecases. No costs. rsh Sub Assistant Registrar To1.The Income Tax, Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax Appeals-VI, Mahatma Gandhi Road, Chennai-34. 3.The Commissioner of Income Tax Appeals II, Coimbatore.4.The Assistant Commissioner of Income Tax, Central Circle 1, Coimbatore. 5.The Commissioner of Income Tax, Circle II, Chennai-34. +2ccs to MR.G.Baskar, Advocate SR. Nos.65096, 65097+3ccs to Mr.M.Saminathan, Advocate SR. Nos.65367, 65368, 65369 https://hcservices.ecourts.gov.in/hcservices/NRL (CO)PR (21/03/2022) TCA Nos. 684 of 2010