Tca/439/2013 Of Commissioiner Of Income Tax v. M/S Sethu Valliammal

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.439 of 2013 Commissioner of Income Tax,Chennai... Appellant/Respondent-vs- M/s.Sethu Valliammal Educational Trust,59, Valliammal Street,Red Hills Main Road, Ambattur,Chennai-600 053... Respondent/Appellant Appeal under Section 260A of the Income-tax Act, 1961,against the order dated 10.01.2013, on the file of the Income-taxAppellateTribunal'C'Bench,Chennai,inI.T.A.No.1445/Mds/2012 for the assessment year 2008-09, againstthe order of the Commissioner of Income Tax(Appeals) XII,Chennai G.I.No.PAN.No.AAATSO126K Assessment year 2008-09, orderdated 04/04/2012 and as against the order of the Government ofIndia, Income Tax Department, (Examsions)-III, ChennaiPAN/GIR.No.36765 AAATS0126K, Assessment year 2008-09, orderdated 31/12/2010. For Appellant:Mr.J.Narayanasamy,Senior Standing CounselFor Respondent :Mr.G.Baskar JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal filed by the appellant/Revenue under Section 260Aof the Income-tax Act, 1961, is directed against the order dated10.01.2013, passed by the Income-tax Appellate Tribunal 'C'Bench, Chennai, in I.T.A.No.1445/Mds/2012 for the assessmentyear 2008-09. 2.The above appeal was admitted on the following substantialquestion of law, vide order dated 26.08.2013:-“Whether on the facts and in the circumstancesof the case, the Tribunal was right in holdingthat the assessee is entitled for exemption underSection 11 by concluding that subscription to the https://hcservices.ecourts.gov.in/hcservices/ chits cannot be treated as an investment and theprovisions of Section 11(5) cannot be invoked todeny the exemption?” 3.Heard Mr.J.Narayanasamy, learned Senior Standing Counselfor the appellant and Mr.G.Baskar, learned counsel for therespondent. 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 //True Copy// Sub Assistant Registrar To 1.The Income-Tax Officer (OSD), Exemptions-III, Chennai. 2.The Commissioner of Income-tax (Appeals)-XII,121, Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 3.The Income-tax Appellate Tribunal 'C' Bench, Chennai. +1cc to M/s.J.Narayanaswamy, Advocate SR.No.73468+1cc to G.Baskar, Advocate Sr.No.72275 https://hcservices.ecourts.gov.in/hcservices/