The Director Of Income Tax, Exemptions-Iii, Chennai v. M/S.shanmuga Arts Science Technology And Research Academy (Sastra), Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND The Director of Income Tax,Exemptions-III, Chennai ...AppellantVs M/s.Shanmuga Arts ScienceTechnology and Research Academy(SASTRA), Chennai ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961againsttheorderdated30.6.2011madeinITA.No.612/Mds/2010 on the file of the Income Tax AppellateTribunal, Chennai 'D' Bench for the assessment year 2004-05and Against the order of the Commissioner of Income TaxAppeals XII, Chennai dated 29.01.2010 made inITA.NO.302/2008-2009. and against the order passedby the Income tax Officer(OSD)(Exemptions) III, chennai dated 30.12.2008 made inUnder Section 143(3) r/w sec 254 of the Income tax Act 1961for the Assessment Year 2004-2005. Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha,learned Senior Standing Counsel appearing for the appellant– Revenue and Ms.J. Sreevidhya, learned counsel appearingfor the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A https://hcservices.ecourts.gov.in/hcservices/ of the Income Tax Act, 1961 is directed against the orderdated 30.6.2011 made in ITA.No. 612/Mds/2010 on the file ofthe Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2004-05. 3. The appeal was admitted on 13.12.2011 on thefollowing substantial question of law :“Whether, on the facts andcircumstances of the case, the Tribunalwas right in allowing deduction ofguarantee commission paid to thetrustees when the Assessing Officerallowed 50% of the claim of theassessee and disallowed the balanceclaim excessive ?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenueon account of the low tax effect in terms of CircularNo.17/2019 dated 08.8.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 Crore. It is further submitted that thetax effect in this case is less than the threshold limit. 5. In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect.The substantial question of law framed is left open. In theevent the tax effect is above the threshold limit fixed inthe said circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeal to beheard and decided on merits. No costs. Sd/- Assistant Registrar(CS) To https://hcservices.ecourts.gov.in/hcservices/