M/S.ramanaidu Charitable Trust v. The Income Tax Officer (Exemptions), Ward

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.03.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Ms.Justice R.N.MANJULA Tax Case Appeal Nos.74 to 79 of 2018andC.M.P.Nos.21295, 21297, 21298, 21299, 21301 & 21303 of 2019 M/s.Ramanaidu Charitable Trust,No.15, A Block, Prince Villa,Rajamanar Street, T.Nagar,Chennai - 600 017....Appellant in all casesVs The Income Tax Officer (Exemptions),Ward-4, Ayakar Bhavan,Annexe Building, 3[rd] Floor,121, M.G.Road, Numgambakkam,Chennai - 600 034. ...Respondent in all cases COMMON PRAYER: Appeals under Section 260A of the Income Tax Act,1961 against the common order dated 28.04.2017 made inITA.Nos.917 to 922/Mds/2015 for the assessment years 2005-06 to2010-11 on the file of the Income Tax Appellate Tribunal, 'C'Bench, Chennai. Appeal against the orders of Commissioner ofIncome Tax (Appeals)-17, Chennai-34, dated 22.12.2014 inITA:No.454; 475/11-12 & 240-243/13-14; and Assistant Director ofIncome Tax (Exemptions)-IV, Chennai-34, dated 26.11.2012 inAAATR0554J/2008-09 – dated 20.06.2011 in PAN AAATR0554/4656-R/2007-08, dated 26.02.2013 in /2006-07; dated26.11.2012 in AAATR0554J/2006-07, dated 26.11.2012 inAAATR0554J/2005-06; and arising out of the Assessment order's ofAssistant Director of Income Tax (Exemption's) IV, Chennai.dated 26.03.2013 in PAN/GIR.No. ,dated 29.12.2011 in PAN/GIR.No. ,dated 26.03.2013 in PAN/GIR.No. ,dated 29.12.2011 in PAN/GIR.No. ,dated 26.03.2013 in PAN/GIR.No. , anddated 26.03.2013 in PAN/GIR.No. , For Appellant : Mr.Vikash for Mr.M.Muralidhara ReddyFor Respondent: Mr.J.Narayanasamy, SSC COMMON JUDGMENT (Delivered by T.S.Sivagnanam,J) These appeals have been filed by the assessee under Section260A of the Income Tax Act, 1961 ('the Act' for brevity)challenging the common order dated 28.04.2017 made inITA.Nos.917 to 922/Mds/2015 for the assessment years 2005-06 to2010-11 on the file of the Income Tax Appellate Tribunal, 'C'Bench, Chennai ('the Tribunal' for brevity). 2. The appellant in all these appeals has raised thefollowing substantial questions of law for consideration:"1. Whether on the facts andcircumstances of the case, the Tribunal wasright in law in holding that the AppellantTrust is not entitled for the benefit underSection 11 even though there is no unduebenefit to a person referred to in Section13(3) of the Income Tax Act, 1961?2.Whetheronthefactsandcircumstances of the case, the Tribunal wasright in law in holding that the Appellantis not entitled for the benefit even thoughthere is no violation of Section 13 and whenthe entire cost of production of the film iseligible for deduction in the hands of thedonor under Rule 9 of the Income Tax Rules?3.Whetheronthefactsandcircumstances of the case, the Tribunal wasright in law in holding that the amendmentto Section 2(15) is not applicable toassessment years 2005-06 to 2010-11 when theamendmentitselfiseffectivefrom01.04.2009?4.Whetheronthefactsandcircumstances of the case, the Tribunal wasright in law in holding that the Appellantis not entitled for the benefit in terms ofthe proviso to Section 2(15) even thoughnowhere in the assessment proceedings thesaid proviso was invoked?5.Whetheronthefactsandcircumstances of the case, the Tribunal wasright in law in holding that re-opening ofAssessment under Section 148 is valid inrespect of Assessment year 2005-06 to 2010-11 without intimation under Section 143(1)of the Income Tax Act, 1961? 5.Whetheronthefactsandcircumstances of the case, the Tribunal wasright in law in holding that re-openingunder Section 148 of the Income Tax Act,1961 can be made for mere change of opinionwithout any material facts?" 3. We have heard Mr.Vikash appearing for Mr.M.MuralidharaReddy, learned counsel for the appellant-assessee andMr.J.Narayanasamy, learned Senior Standing Counsel appearing forthe respondent-Revenue. 5.Whetheronthefactsandcircumstances of the case, the Tribunal wasright in law in holding that re-openingunder Section 148 of the Income Tax Act,1961 can be made for mere change of opinionwithout any material facts?" 3. We have heard Mr.Vikash appearing for Mr.M.MuralidharaReddy, learned counsel for the appellant-assessee andMr.J.Narayanasamy, learned Senior Standing Counsel appearing forthe respondent-Revenue. 4. The learned counsel for the appellant-assessee submitsthat theappellant-assesseehasalreadyfiledthedeclaration/undertaking under the Vivad Se Vishwas Scheme and isawaiting 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 these appealsin 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 appeals 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 appeals are disposed of with theaforementioned liberty and the substantial questions of lawframed are left open. No costs. Consequently, connectedmiscellaneous petitions are closed. Sd/- Assistant Registrar(CS) //True Copy// hvk To 1. The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2. The Income Tax Officer (Exemptions), Ward-4, Ayakar Bhavan, Annexe Building, 3[rd] Floor, 121, M.G.Road, Numgambakkam, Chennai - 600 034. 3.The Commissioner of Income Tax (Appeals)-VII,121, M.G.Road, Nungambakkam, Chennai-34. 4.The Assistant Director of Income Tax (Exemptions)-IV,3[rd] Floor, Annexe Building, 121, M.G.Road, Chennai-34. 5.The Deputy Director of Income Tax (Exemptions)-IV3[rd] Floor, Annexe Building, 121, M.G.Road, Chennai-34.6.The Assistant Registrar, Income Tax Appellate Tribunal,IIIrd Floor, Balaji Bhavan, Besant Nagar, Chennai-90. +6ccs to M/s.Muralidhara Reddy,Advocate,SR No. 16438,16439, 16440,16441,16436,16437 TCA.Nos.74 to 79 of 2018andC.M.P.Nos.21295, 21297, 21298,21299, 21301 & 21303 of 2019 SR II(CO) B.VC (03/08/2021)