The Commissioner Of Income Tax, Chennai v. M/S.sindhi Educational Society (Madras), Chennai-8

In the High Court of Judicature at Madras Dated : 02.1.2019 Coram : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case Appeal No.524 of 2016 The Commissioner of Income Tax, Chennai ...Appellant/Appellant VsM/s.Sindhi Educational Society(Madras), Chennai-8....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 15.5.2015 in ITA No.981/Mds/2014 on thefile of the Income Tax Appellate Tribunal Madras 'D' Bench forthe assessment year 2010-11 and against the order of theCommissioner of Income Tax (Appeals)III, Chennai dated03.03.2014 in I.T.A. No. 167/2012-2013 and against the order ofthe Assistant Director of Income Tax (Exemptions) IV, Chennaidated 05.02.2012 in PA/GIR No. AABTSO129B. For Appellant : Mr.J.Narayanasamy, SSCFor Respondent :Mr.V.S.Jayakumar Judgment was delivered by T.S.SIVAGNANAM,JHeard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 27.7.2016 onthe following substantial question of law : “Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the assessee isentitled to claim depreciation on the assetseven though the cost of purchase of assetwas already treated as application of incomeunder Section 11 of the Income Tax Act ?” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. https://hcservices.ecourts.gov.in/hcservices/ 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial question of law framed is leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. s/d- Assistant Registrar(CS-III) True Copy Sub-Assistant RegistrarTo1. The Income Tax Appellate Tribunal, Madras 'D' Bench.2. The Commissioner of Income Tax (Appeals)VII, Chennai.3. The Assistant Director of Income Tax (Exemptions)IV, Chennai.+1 CC to Mr.J.Narayanasamy, Advocate sr 150.+1 CC to Mr.V.S.Jayakumar, Advocate sr 232.TCA.No.524 of 2016KK(CO)SP(07/02/2019)