The Principal Commissioner Of Income Tax, Salem v. M/S.s 4091 Mallasamudram Paccs

In the High Court of Judicature at MadrasDated : 02.1.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.122 of 2018 The Principal Commissioner of Income Tax, Salem ...Appellant / Appellant Vs M/s.S 4091 Mallasamudram PACCS Ltd., Namakkal District-637503....Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 30.1.2017 in ITA No.3257/Mds/2016 on thefile of the Income Tax Appellate Tribunal Madras 'D' Bench forthe assessment year 2013-14 against the order dated 30.08.2016in ITA No.255/15-16 on the file of the Commissioner of IncomeTax (Appeals), Salem against the order dated 30.10.2015 inPAN/GIR No.AABAN1134E on the file of the Income Tax Officer,Ward 5, Namakkal. For Appellant : Mr.M.Swaminathan, SSC For Respondent :Ms.S.Surya Devi Judgment was delivered by T.S.SIVAGNANAM,JHeard the learned Senior 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 Revenue has filed this appeal byraising the following substantial question of law : https://hcservices.ecourts.gov.in/hcservices/ “Whether the Appellate Tribunal isright in allowing deduction under Section80P(2)(a)(i) of the Income Tax Act to theassessee society, when the assesseecooperative society is engaged in financebusiness and cannot be termed as acooperative society ?” 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. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial question of law raised 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. Sd/- Assistant Registrar(CS-IV) //True Copy// Sub Assistant Registrar To1)The Income Tax Appellate Tribunal, Madras 'D' Bench.2)The Commissioner of Income Tax (Appeals), Salem. 3)The Income Tax Officer, Ward 5, Namakkal. 4)The Principal Commissioner of Income Tax, Salem. +1 cc to Mr.M.Swaminathan, Sr.Standing counsel, S.R.No.74/19 +1 cc to M/s.S.Surya Devi, Advocate, S.R.No.836/19 TCA.No.122 of 2018SSD(CO)SSM(13/02/2019)