M/S.INFORMATION SYSTEMS vs. DEPUTY DIRECTOR OF INCOME TAX

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TCA/153/2017HC Madras09 March 2021Bench: Hon`ble Mr Justice M.DURAISWAMY5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court did not decide the substantial questions of law framed for consideration. This was due to subsequent developments, specifically the enactment of the Direct Tax Vivad Se Vishwas Act, 2020. The learned counsel for the appellant/assessee informed the Court that the assessee had been issued with Form-3 on 11.01.2021 and sought permission to withdraw the appeal. In view of this submission, the Tax Case Appeal was dismissed as withdrawn. No costs were awarded. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The assessee, M/s. Information Systems Audit & Control Association, Chennai Chapter (formerly ISACA Trust), filed an appeal before the High Court of Judicature at Madras against an order dated 10.02.2016 passed by the Income Tax Appellate Tribunal (ITAT), Madras "A" Bench. The appeal pertained to assessment year 2009-10. The ITAT's order had held that the trust was not entitled to exemption under Section 11 of the Income Tax Act, 1961, as it could not be considered an "educational trust," and also that its activities were not charitable in nature, disentitling it to exemption under Section 2(15) of the Act. The High Court was hearing the appeal filed under Section 260A of the Act.

What were the issues?

The High Court had to decide the following substantial questions of law: 1. Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the appellant trust is not entitled for exemption u/s.11 of the Act, having held that the trust in question cannot be considered to be an “educational trust”? 2. Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the appellant is not entitled to exemption u/s.2(15) of the Act, holding that the activities carried on by it are not charitable in nature? Assessee's Contention: The assessee's counsel sought permission to withdraw the appeal, citing the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, and that Form-3 had already been issued to the assessee on 11.01.2021. Revenue's Contention: No specific contentions were recorded for the revenue as the appeal was withdrawn by the assessee.

Which sections of the Income-tax Act were involved?

Section 260A,Section 11,Section 2(15)

AI-generated summary — verify with the full judgment below

Tax Case Appeal No.153 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 09.03.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal No.153 of 2017 M/s.Information Systems Audit & Control Association, Chennai Chapter, (Formerly known as ISACA Trust) 15, Ground Floor, Luz Golden Enclave, 180/4, Luz Church Road, Mylapore, Chennai – 600 004.

... Appellant Vs.

Deputy Director of Income Tax (Exemptions) – 1, Chennai. ... Respondent

Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras "A" Bench, dated 10.02.2016 passed in I.T.A.No.1693/Mds/2015. For Appellant : Mr.R.Sivaraman For Respondent : Mr.J.Narayanaswamy

Senior Standing Counsel Page 1/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.153 of 2017 J U D G M E N T (Delivered by M.DURAISWAMY, J.) This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 10.02.2016 passed by the Income Tax Appellate Tribunal, Madras "A" Bench, ('the Tribunal' for brevity) in I.T.A.No.1693/Mds/2015 for the assessment year 2009-10. The assessee has raised the following Substantial Questions of Law in the above appeal. “1.Whether on the facts and circumstances of the case, the Tribunal was justified in holding that the appellant trust is not entitled for exemption u/s.11 of the Act, having held that the trust in question cannot be considered to be an “educational trust”? 2.Whether on the facts and circumstances of the case, the Tribunal was justified in holding that the appellant is not entitled to exemption u/s.2(15) of the Act, holding that the activities carried on by it are not charitable in nature?” Page 2/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.153 of 2017 2. We have heard Mr.R.Sivaraman, learned counsel for the appellant/assessee and Mr.J.Naryanaswamy, learned Senior Standing Counsel for the respondent/Revenue. 3. It may not be necessary for this Court to decide the Substantial Questions of Law framed for consideration on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020. 4. We are informed by the learned counsel for the appellant/ assessee that the assessee had already been issued with Form-3 on 11.01.2021 and the learned counsel for the appellant seeks permission of this Court to withdraw the appeal. Page 3/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.153 of 2017 5. In view of the submission made by the learned counsel for the appellant, the Tax Case Appeal stands dismissed as withdrawn. No costs. [M.D., J.] [T.V.T.S., J.] Index : Yes/No 09.03.2021 Internet : Yes

mkn To 1. Income Tax Appellate Tribunal, Madras "A" Bench 2.The Deputy Director of Income Tax (Exemptions) – 1, Chennai. Page 4/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.153 of 2017 M. DURAISWAMY, J. and T.V. THAMILSELVI, J. mkn Tax Case Appeal No.153 of 2017

09.03.2021 Page 5/5 https://www.mhc.tn.gov.in/judis/

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