M/S.frp Institute, Chennai-97 v. The Commissioner Of Income Tax (Exemptions), Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 04.1.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.526 of 2018 M/s.FRP Institute, Chennai-97 ...AppellantVs The Commissioner of Income Tax(Exemptions), Chennai ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 20.3.2017 passed by the Income TaxAppellate Tribunal, Madras 'C' Bench, Chennai made inI.T.A.No.1385/Mds/2015 for the assessment year 2011-12 andagainst the order dated 30.06.2014 made in ITA NO.1141/13-14 onthe file of the Commissioner of Income Tax (Appeals)-VIIChennai-34 for the Assessment year 2011-2012 against the orderdate 31.12.2013 made in PAN NO. on the file of theDeputy Director of Income Tax(Exemptions)-III Chennai for theassessment year 2011-2012. For Appellant: Mr.T.VasudevanFor Respondent: Mr.J.Narayanaswamy, SSC Judgment was delivered by T.S.SIVAGNANAM,J This appeal has been filed by the assessee under Section260A of the Income Tax Act, 1961 ('the Act' for brevity)challengingtheorderdated20.3.2017madeinI.T.A.No.1385/Mds/2015 on the file of the Income Tax AppellateTribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) forthe assessment year 2011-12. 2. The appeal was admitted on 19.12.2018 on the followingsubstantial questions of law:“i. Whether the Tribunal was right indenying the exemption under Section 11 ofthe Act on the ground that the assesseeexisted not for charitable purpose withinthe meaning of Section 2(15) of the Act ? https://hcservices.ecourts.gov.in/hcservices/ ii. Whether the Tribunal was right indenying the exemption under Section 11merely because there was surplus of incomeover expenditure ? iii. Whether the Tribunal is right inlaw in holding that there is no educationalactivity by the assessee without taking intoconsideration that the assessee impartseducation and training in the field of fibrereinforced plastics to various institutionsand industry? And iv. Whether the Tribunal was right inconcluding that the assessee is engaged intrade and commerce and comes within theFourth Proviso to Section 2(15) withoutadverting to the predominant nature ofactivity of the assessee ?” 3. We have heard Mr.T.Vasudevan, learned counsel appearingfor the appellant/assessee and Mr.J.Narayanaswamy, learnedSenior Standing Counsel appearing for the respondent/Revenue. 4. The learned counsel on behalf of the appellant/assesseesubmits that the appellant/assessee already filed thedeclaration/ undertaking under the Vivad Se Vishwas Scheme on30.12.2020 and is awaiting orders to be passed in Form No.3. 5. In the light of the subsequent event, the CompetentAuthority shall process the application/declaration inaccordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) and pass appropriate orders as expeditiously aspossible. The assessee is given liberty to restore this appealin the event the ultimate decision to be taken on thedeclaration filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made,the Registry shall entertain the prayer without insisting uponany application to be filed for condonation of delay inrestoration of the appeal and on such request made by theassessee by filing a miscellaneous petition for restoration, theRegistry shall place such petition before the appropriateDivision Bench for orders. 6. The tax case appeal stands disposed of with theaforementioned liberty. Consequently, the substantial questionsof law framed are left open. No costs. //True Copy// To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2.The Commissioner of Income Tax (Exemptions), Chennai. 3.The Deputy Director of Income Tax(Exmptions)-III Chennai. Chennai. 4.The Commissioner of Income Tax(Appeals)-III, Chennai-38. Chennai-38. gmr(CO)rv(04/02/2021) 6. The tax case appeal stands disposed of with theaforementioned liberty. Consequently, the substantial questionsof law framed are left open. No costs. //True Copy// To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2.The Commissioner of Income Tax (Exemptions), Chennai. 3.The Deputy Director of Income Tax(Exmptions)-III Chennai. Chennai. 4.The Commissioner of Income Tax(Appeals)-III, Chennai-38. Chennai-38. gmr(CO)rv(04/02/2021) TCA.No.526 of 2018