The Director Of Income Tax, Exemptions-Iii, Chennai v. M/S.sri.s.kuppusamy Memorial Education Trust, Tiruvannamalai

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.552 OF 2011 The Director of Income Tax,Exemptions-III, Chennai...AppellantVs M/s.Sri.S.Kuppusamy MemorialEducation Trust, Tiruvannamalai....Respondent Prayer:- APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 24.6.2011 made in ITA.No.76/Mds/2011 on the fileof the Income Tax Appellate Tribunal, Chennai 'A' Bench for theassessment year 2007-08. and against the Order of theCommissioner of Income Tax (Appeals)-XII, Chennai-34, dated15.10.2010 made in ITA.No.248/09-10 against the Order of theIncome Tax Officer (OSD), Exemption -II, Chennai dated24.12.2009 for PAN/GIR.NO. , for the Assessment year2006-2007. Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.J.Narayanasamy, learned Senior StandingCounsel appearing for the appellant–Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated24.6.2011 made in ITA.No. 76/Mds/2011 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench for the assessmentyear 2007-08. 3. The appeal was admitted on 12.12.2011 on the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ “i. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that once the applicationis more than the total receipts, theassessee would be entitled to the benefit ofexemption under Section 11 of the Act ? andii. Whether, on the facts andcircumstances of the case, the Tribunal wasright in deciding that the investment of thetrust was not in violation of Section 13 ofthe Act?” 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.17/2019dated 08.8.2019 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 questions of law framed are 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 III) //True Copy// RS Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax(Appeals)-XII,Chennai-34. 3.The Income Tax Officer(OSD),Exemption – II, Chennai. 4.The Director of Income Tax,Exemption-III, Chennai.Exemption-III, Chennai. +1cc to Mr.S.Sridhar, Advocate, S.R.No.70607 +1cc to Mr.J.Narayanasamy, Advocate, S.R.No.72223 TCA.No.552 of 2011 MR(CO)CS/23/10/2019