M/S. THE GOVT.TELECOMMUNICAI vs. THE ASST.COMMISSIONER OF INC

TCA.No.171 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 09.3.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.171 of 2021 M/s.The Government Telecommunications Employees Cooperative Society Ltd., Chennai-1. ...Appellant Vs The Assistant Commissioner of Income Tax, Non Corporate Circle 12(1), Chennai ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 23.10.2019 passed by the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai made in I.T.A.No.2703/Chny/2018 for the assessment year 2015-16. For Appellant: Mr.A.S.Sriraman For Respondent: Mr.M.Swaminathan, SSC assisted by Mrs.V.Pushpa, JSC 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.171 of 2021 Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated 23.10.2019 made in I.T.A.No.2703/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai, 'D' Bench ('the Tribunal' for brevity) for the assessment year 2015-16. 2. The Revenue has filed this appeal by raising the following substantial questions of law : “(i) Whether the Appellate Tribunal is correct in denying the claim for deduction u/s 80P(2)(a)(i) of the Act by following their non- existent order dated 11.1.2018 in view of their subsequent order dated 08.06.2018 read with the order dated 19.9.2018 and set aside by this Court's decision dated 06.6.2019 in TCA. No.306/2019? (ii) Whether the provisions of Section 80P(2)(a)(i) of the Act permit the claim for deduction relatable to the interest income earned from the advances to the staff/ employees as well as from the interest earned from savings bank account? and (iii) Whether the reading of the bye-laws of the Appellant society as well as the provisions in MSCS Act, 2002 for interpreting 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.171 of 2021 section 80P(2)(a)(i) of the Act while considering the correctness of claim of deduction in the computation of taxable total income was in accordance with the well settled principles of purposive theory and harmonious interpretation in the orders under challenge?” 3. We have heard Mr.A.S.Sriraman, learned counsel for the appellant – assessee and Mr.M.Swaminathan, learned learned Senior Standing Counsel assisted by Mrs.V.Pushpa, learned Junior Standing Counsel accepting notice for the respondent/Revenue. 4. In the light of the judgment rendered by a Division Bench of this Court, to which, one of us (TSSJ) was a party, in the assessee's own case in TCA.No.306 of 2019 dated 06.6.2019, the above tax case appeal is allowed, the impugned order passed by the Tribunal is set aside and the matter is remanded to the Tribunal to be heard and decided afresh. The substantial questions of law raised are left open. No costs. 09.3.2021 RS 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.171 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS To 1.The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 2.The Assistant Commissioner of Income Tax, Non Corporate Circle 12(1), Chennai TCA.No.171 of 2021 09.3.2021 4/4 https://www.mhc.tn.gov.in/judis/