Tca/132/2018 Of Commissioner Of Income Tax v. All India Arya Vysya Samajam

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Commissioner of Income Tax,Chennai. ... Appellant in all Appeals M/s.The All India Arya Vysya Samajam,230, NSC Bose Road, Sowcarpet,Chennai-600 079.PAN : ... Respondent in all Appeals Appeals under Section 260A of the Income Tax Act, 1961against the order dated 07.09.2016 made in I.T.A.Nos.1623 to1625/Mds/2014 on the file of the Income Tax Appellate Tribunal'B' Bench, Chennai for the assessment years 2009-10 to 2011-12respectively, and against the Order passed by the Commissionerof Income Tax (Appeals)-VII, Chennai -34 dated 17/02/2014 madein ITA Nos.511/11-12, 236/12-13 and 1075/13-14 and against theOrders passed by the Joint Commissioner of Income Tax (OSD)(Excemptions)II, Chennai - 34, the Deputy Director of Income Tax(Excemptions)II, Chennai-34 made in PAN/GIN No. dated26/12/2011, 28/01/2013, 29/11/2013 for the Assessment Years2009-10, 2010-11 and 2011-12, respectively. (Judgement of the Court was delivered by T.S.Sivagnanam, J.) These appeals, by the appellant/Revenue filed underSection 260A of the Income-tax Act, 1961, are directed against https://hcservices.ecourts.gov.in/hcservices/ the common order of the Income-tax Appellate Tribunal 'B' Bench,Chennai in I.T.A.Nos.1623 to 1625/Mds/2014 dated, 07.09.2016 forthe assessment years 2009-10 to 2011-12. 2.The above appeals have been filed raising the followingsubstantial questions of law:- “(i) Whether on the facts and in thecircumstances of the case, the Tribunal was rightin holding that the assessee is eligible to enjoythe benefit of exemption u/s 12 of the I.T.Acttowards the receipt of Corpus Donation though theHon'ble ITAT held the activities of the assesseeas non-charitable as per the amended provisos toSection 2(15) of the I.T.Act? (ii) Whether on the facts and in thecircumstances of the case, the Hon'ble ITAT wasright in law in holding that the assessee iseligible to enjoy the benefit of exemption u/s 12of the I.T.Act towards the receipt of CorpusDonation, in contravention to provisions ofsection 13(8) inserted w.e.f 1.4.2009?” 3.Heard Mr.J.Narayanaswamy, learned Senior StandingCounsel for the appellant/Revenue; and Mr.M.P.Senthil Kumar,learned counsel for the respondent/assessee. 4.The learned Senior Standing Counsel for the Revenuesubmits that the appeals are not being pursued by the Revenue onaccount of low tax effect in the light of the Circular No.3 of2018, dated 11.07.2018. 5.Thus, by applying the above Circular, these tax caseappeals stand dismissed on the ground of low tax effect and thesubstantial questions of law, framed for consideration, are leftopen. The Revenue is at liberty to seek for restoration ofappeals if at a later point of time, it is found that the taxeffect is above the threshold limit or to fall under theexceptional clauses mentioned in the Circular. No costs. Sd/- Assistant Registrar(CO) //True Copy// abr To 1. The Joint Commissioner of Income-tax (OSD), (Exemptions)-II, Chennai. 2. The Commissioner of Income-tax (Appeals)-VII, Chennai-600 034. Chennai-600 034. 3. The Income Tax Appellate Tribunal -B- Bench, Chennai. 4. The Commissioner of Income Tax, Chennai. 5. The Deputy Commissioner of Income Tax, (Excemptions)-II, i/c, Chennai - 34. (Excemptions)-II, i/c, Chennai - 34. 6. The Joint Commissioner of Income Tax, (Excemptions), Chennai. (Excemptions), Chennai. +1 cc to Mr.J.Narayanasamy, SSC for Income Tax Advocate, S.R.No.47723 Tax Advocate, S.R.No.47723 CA(CO) SSM(14/08/2019) T.C.A.Nos.132 to 134 of 2018