Tca/418/2014 Of Director Of Income Tax v. M/S Sethu Valliammal

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.418 of 2014 Director of Income Tax (Exemptions),Chennai... Appellant-vs- M/s.Sethu Valliammal Educational Trust,59, Valliammal Street,Red Hills Main Road,Ambattur, Chennai-600 053... Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 29.10.2013, made in I.T.A.No.1135(Mds)/2013 onthe file of the Income Tax Appellate Tribunal 'A' Bench, Chennaifor the assessment year 2009-10, and against the order of theCommissioner of Income Tax (Appeals) XII, Chennai-34, dated12.03.2013 made in ITA.NO.277/2011-12, and against the order ofthe Assistant Director of Income Tax Exemptions-III, Chennaidated 30.11.2011 made in IT.N.S.NO.65. For Appellant:Mr.J.Narayanasamy,Senior Standing Counsel For Respondent :Mr.M.P.Senthil KumarFor Mr.G.Baskar This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated29.10.2013, made in I.T.A.No.1135(Mds)/2013 on the file of theIncome Tax Appellate Tribunal 'A' Bench, Chennai for theassessment year 2009-10. 1/3 https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal was admitted on 12.08.2014, on the followingsubstantial question of law:- “Whether on the facts and in the circumstancesof the case the Tribunal was right in holding thatthe assessee is entitled for exemption u/s 11 byconcluding that subscription to the chits cannotbe treated as an investment and the provisions ofSection 11 (5) cannot be invoked to deny theexemption?” 3.Heard Mr.J.Narayanasamy, learned Senior Standing Counselfor the appellant – and Mr.M.P.Senthil Kumar, learned counselfor Mr.G.Baskar, learned counsel for the respondent. 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019,dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5. In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar abr To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. 2/3 2.The Income Tax(Appeals)XII, Chennai-34. 3.The Assistant Director of Income Tax,Exemptions-III, Chennai. 4.The Director of Income Tax(Exemptions), Chennai. +1cc to Mr.G.Baskar, Advocate sr.73049 T.C.A.No.418 of 2014 br(co)nr 31/10/2019 3/3