The Commissioner Of Income Tax-Ii Coimbatore v. M/S.ootacamund Club, Club Road Po Box No,19, Ootacamund

DATED:13.01.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case Appeal Nos.263, 264, 265, 266, 267 and 268 of 2010 The Commissioner of Income Tax-IICoimbatore....Appellant in all the Appeals/RespondentVs. M/s.Ootacamund Club, Club RoadPO Box No,19, OotacamundPAN No.AAACO6965F ...Respondent in all the Appeals/ Appellant Tax Case Appeals filed under Section 260A of the IncomeTax Act, 1961 against the common order of the Income TaxAppellate Tribunal, Madras 'D' Bench, Chennai, dated07.08.2009 in ITA Nos.505, 506, 507, 508, 509 and510/Mds/2009, against the order passed by the Commissioner ofIncome Tax (Appeals) -1, Coimbatore, dated 03.02.2009 madeinAppeal.No.138/08-09, Appeal No.139/08-09, Appeal No.140/08-09, Appeal No.141/08-09 and Appeal No.142/08-09, Appeal No.143/08-09 respectively against the order passed by the Income Tax Officer, Ward1(1) Ooty made in PAN/GIR No.AAAC06965F, dated 31.10.2008PAN/GIR No.AAAC06965F, dated 31.10.2008PAN/GIR No.AAAC06965F, dated 31.10.2008PAN/GIR No.AAAC06965F, dated 31.10.2008PAN/GIR No.AAAC06965F, dated 31.10.2008PAN/GIR No.AAAC06965F, dated 31.10.2008 (Respectively) For Appellant :Mr.T.R.Senthil Kumar, Senior Standing Counsel Assisted by Ms.K.G.Usharani For Respondent : Ms.M.Sumithra for Mr.R.Sivaraman https://hcservices.ecourts.gov.in/hcservices/ C O M M O N J U D G M E N T (Judgment of the Court was delivered by DR.VINEET KOTHARI,J) These Tax Case Appeals have been filed by the Revenuecalling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, by raising the followingsubstantial questions of law: "(i) Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that, the income frominterest on investments with Banks is exempt fromtax on the Principle of Mutuality is valid? (ii) Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that, Mutuality Principles willapply to the facts of this case, even though thatthe receipts did not arise from any dealingbetween the assessee club and its members and thetransactions were with third parties and wereclearly tainted with commerciality?" 2. When the matter is taken up for final hearing, thelearned Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 08.08.2019, wherein it is stipulatedthat appeals shall not be filed/pursued by the Departmentbefore the High Court in cases where the tax effect does notexceed Rs.1 Crore (Rupees One Crore Only) 3. In the instant cases, the tax effect is said to beless than the monetary limit imposed and therefore, theappeals filed by the Revenue is dismissed as not pressed,keeping open the substantial questions of law fordetermination in an appropriate case. Sd/-Assistant Registrar(AD I (MDU)) //True copy// Sub Assistant Registrar KST To 1. The Commissioner of Income Tax, Coimbatore. 2. The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 'D' Bench, Chennai. 3. The Commissioner of Income Tax (Appeals) 1, Coimbatore. 4. The Income Tax Officer, Ward 1(1), Ooty. Ward 1(1), Ooty. +1cc to Mr.T.R.Senthil Kumar, Advocate SR.No.2932 TCA Nos.263 to 268 of 2010 BS(CO)GMY(17/06/2020)