Tca/1158/2010 Of The Director Of Income Tax v. M/Smerit International

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 02.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.1158 of 2010 The Director of Income TaxExemption, Chennai. M/s.Merit International Education Foundation (Regd.),No.1997, 13[th] Main Road,Anna Nagar, Chennai-40....Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalChennai “D” Bench, dated 04.06.2010 in I.T.A.No.335/Mds/2010,for the assessment year 2004-05 against the order of theDirector of Income Tax (Exemption) Chennai dated 27.03.2009 madein F.No.DIT(E) 263(2)/07-08. For Respondent :No Appearance JUDGMENT This appeal, by the appellant/Revenue, is directed againstthe order of the Income Tax Appellate Tribunal Chennai “D”Bench, dated 04.06.2010 in I.T.A.No.335/Mds/2010, for theassessment year 2004-05. 2.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the Revenue. 3.The above appeal has been admitted on 21.12.2010, on thefollowing substantial questions of law:- https://hcservices.ecourts.gov.in/hcservices/ “(i) Whether on the facts and circumstancesof the case, the Tribunal was right in notdeciding the issue of granting exemption withoutsatisfying the conditions of Section 13 and 11 ofI.T.Act?(ii) Whether on the facts and circumstancesof the case, the Tribunal was right in notconsidering that the funds of the Trust wasenjoyed by the Trustees through the company inviolation of Section 13 of I.T.Act?” 4.We have perused the order of assessment as well as theorder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursuethis appeal in view of the low tax effect. Hence, this appealis dismissed and the substantial questions of law, framed forconsideration, are left open. The Revenue is at liberty to seekfor restoration of appeal if at a later point of time, it isfound that the tax effect is above the threshold limit or tofall under the exceptional clauses mentioned in the Circular.No costs. abr To 1.The Income Tax Appellate Tribunal Chennai “D” Bench. 2. The Director of Income Tax (Exemption) Chennai.