Commissioner Of Income Tax,Salem v. Jairam Educational Trust

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.502 of 2015 Commissioner of Income Tax,Salem....Appellant/Respondent Vs Jairam Educational Trust,2, Deivanayagam Street,Shevapet, Salem....Respondent/ Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 21.11.2014 made in ITA.No.1720/MDS/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2004-05 against the Order of theCommissioner of Income Tax (Appeals), Salem in ITA No.172/2010-11 dated 29.07.2013 and against the Order of the AssistantCommissioner of Income Tax Circle III, Salem, made in AAATJ 3034B dated 31.12.2010. We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Ms.V.Pushpa, learned Standing Counsel appearing forthe appellant/revenue. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated21.11.2014 made in ITA.No.1720/MDS/2013 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for theassessment year 2004-05. 3.The appeal was admitted on 26.08.2015 on the followingsubstantial questions of law :“1.Whether, on the facts and in thecircumstances of the case, the Tribunal was rightin holding that corpus fund received by the Trust https://hcservices.ecourts.gov.in/hcservices/ during the year cannot be treated as the income ofthe trust/institution for the purpose ofdetermining 'aggregate annual receipts, in order toenjoy the benefit under Section 10(23C)(iiiad)?2.Whether, on the facts and in thecircumstances of the case, the Tribunal was rightin holding that trust receipts and receipts of thecollege running under the trust are not to beclubbed together for the purpose of determining thethreshold of exemption under Rule 2BC of Income TaxRules, 1962 read with Section 10(23C)(iiiad) of theIncome Tax Act?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2. The Commissioner of Income Tax (Appeals), Salem 3. The Assistant Commissioner of Income Tax Circle III, Salem +1cc to Mr.M.Swaminathan, Advocate, SR.No.73531 https://hcservices.ecourts.gov.in/hcservices/