Director Of Income Tax Exemptions Ii, Chennai v. M/S.sri Vekkaliamman Educational And Charitable Trust

CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R. HEMALATHA T.C.A.No.263 of 2014 Director of Income Tax Exemptions II,Chennai. ... AppellantVs. M/s.Sri VekkaliammanEducational and CharitableTrust, No.108, East MadhaChurch Street, Royapuram,Chennai – 600 103.... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 27.09.2013 in I.TA.No.1402/Mds/2013,Assessment Year 2009-10, against the order of the Commissionerof Income Tax (Appeals)-XII, Chennai dated 12/03/2013 in ITANo.258/2011-2012, G.I.No./P.A No.AAFTS7863Q for the AssessmentYear 2009-2010 against the order of the Joint Director ofIncome-Tax (Exemptions), Chennai dated 23/11/2011 in PAN /GIRNO. for the Assessment Year 2009-2010. For Appellant : Mr.J.Narayanaswamy Senior Standing CounselFor Respondent : Ms.Sangeetha JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.J.Narayanaswamy, learned Senior StandingCounsel for the appellant/Revenue and Ms.Sangeetha, learnedcounsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 27.09.2013 made in I.TA.No.1402/Mds/2013 on thefile of the Income Tax Appellate Tribunal, Chennai, “B” Bench(for brevity, the Tribunal) for the Assessment Year 2009-10. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 22.07.2014 on the followingsubstantial questions of law: “1.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law in holdingthat the assessee is eligible for exemption underSection 11 of the Act? 2.Whether on the facts and in thecircumstances of the case, the Tribunal was rightin law in holding that there is no violationwithin the meaning of Section 13(1)(c) read withSection 13(2) and Section 13(3) of the Income TaxAct when the building contract work was awardedto the Managing Trustee, thereby allowing him toearn profit from the said contract?” 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 08.08.2019 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 as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. //True Copy// mknTo Sub Assistant Registrar 1.The Income Tax Appellate Tribunal, Chennai, “B” Bench 2.The Director of Income Tax Exemptions II, Chennai. Chennai. 3.The Commissioner of Income Tax (Appeals)-XII, Chennai-34. Chennai-34. 4.The Joint Director of Income Tax, (Exemptions), Chennai. (Exemptions), Chennai. T.C.A.No.263 of 2014smi[co]srg 01/07/2021