Principal Commissioner Of Income Tax (Exemptions)Ward v. M/S.bhakthavatsalam Memorial Trustplot

I IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 23.10.2024 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMARANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.226 of 2022 Principal Commissioner of Income Tax (Exemptions)Ward-2, Ayakar Bhavan, Annexe Building, III Floor121, M.G.Road, Nungambakkam, Chennai-34.....Appellant Vs. M/s.Bhakthavatsalam Memorial TrustPlot No.14, 31st Street, Periyar NagarKorattur, Chennai-80 PAN AAATB 2624D ....Respondent ----- Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'C' Bench Chennai, dated 11.01.2018 in ITA.No.684/MDS/2015. For Appellant : Mrs.V.Pushpa Senior Standing Counsel For Respondent : Mr.A.S.Sriraman J U D G M E N T (Delivered by R.SURESH KUMAR, J.) This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 1 of 5 Chennai by raising the following substantial questions of law: -For AY 201011 1. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that the assessee is eligible for exemption u/s.11 of the IT Act, 1961 without appreciating the fact that there is a complete mismatch between the objects of the assesee's trust and that of the recipient trust to which the assessee had advanced money?the Hon'ble ITAT was right in law in holding that the assessee is eligible for exemption u/s.11 of the IT Act, 1961 without appreciating the fact that there is a complete mismatch between the objects of the assesee's trust and that of the recipient trust to which the assessee had advanced money? 2. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that there was no violation u/s.13(1)(b) of the Income Tax Act, 1961 irrespective of the fact that the recipient trust is established for the welfare of a particular religious community?the Hon'ble ITAT was right in law in holding that there was no violation u/s.13(1)(b) of the Income Tax Act, 1961 irrespective of the fact that the recipient trust is established for the welfare of a particular religious community? 3. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that there was no violation u/s.13(1)(b) of the Income Tax Act, 1961 without appreciating the fact that there is a complete failure on the part of the assessee to accumulate and invest the funds in terms of the provisions of Section 11(5) of the I.T.Act?the Hon'ble ITAT was right in law in holding that there was no violation u/s.13(1)(b) of the Income Tax Act, 1961 without appreciating the fact that there is a complete failure on the part of the assessee to accumulate and invest the funds in terms of the provisions of Section 11(5) of the I.T.Act? -For AY 201112 4. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that the assessee is eligible for exemption u/s.11 of the IT the Hon'ble ITAT was right in law in holding that the assessee is eligible for exemption u/s.11 of the IT 2 of 5 Act, 1961 without appreciating the fact that there is a complete mismatch between the objects of the assessee trust and that of the recipient trust to which the assessee had advanced money? 5. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that donation specifically given for corpus funds cannot be treated as income of the trust if the assessee is not eligible for exemption u/s.11 of the IT Act? -For AY 201112 4. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that the assessee is eligible for exemption u/s.11 of the IT the Hon'ble ITAT was right in law in holding that the assessee is eligible for exemption u/s.11 of the IT 2 of 5 Act, 1961 without appreciating the fact that there is a complete mismatch between the objects of the assessee trust and that of the recipient trust to which the assessee had advanced money? 5. Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in holding that donation specifically given for corpus funds cannot be treated as income of the trust if the assessee is not eligible for exemption u/s.11 of the IT Act? 2. It is brought to our notice by the learned Standing Counsel for the appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of 2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit imposed and therefore, the appeal can be disposed of, keeping the substantial questions of law raised in this appeal open for adjudication at a later point of time. 3. Recording the aforesaid submission made by the learned Standing Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low tax effect, keeping open the substantial questions of law for adjudication at appropriate stage. No costs. (R.S.K.,J.) (C.S.N.,J.) 23.10.2024 3 of 5 NCS : Yes/NoKST ToThe Income Tax Appellate Tribunal'C' Bench, Chennai. https://www.mhc.tn.gov.in/judis 4 of 5 T.C.A.No.226 of 2022 R.SURESH KUMAR, J.ANDC.SARAVANAN, J. AND KST T.C.A.No.226 of 2022 https://www.mhc.tn.gov.in/judis 5 of 5 T.C.A.No.226 of 2022 23.10.2024