Income Tax Officer vs. M/s. All India Chess Federa

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TCA/184/2022HC Madras08 July 2022Bench: Hon`ble Mr Justice R. MAHADEVAN4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court did not decide the substantial questions of law on merits. Instead, the learned counsel for the appellant/Revenue brought to the court's notice Circular No.17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT). This circular stipulates that appeals shall not be filed or pursued by the Department before the High Court if the tax effect does not exceed Rs.1,00,00,000/-. The revenue submitted that the tax effect in these appeals was less than this threshold limit. Consequently, the High Court dismissed the present appeals as withdrawn, noting that the tax effect was below the monetary limit. The court explicitly stated that the substantial questions of law were kept open for determination in appropriate cases. No costs were awarded.

What were the facts?

The Income Tax Officer (Exemptions) Ward-2, Chennai, the appellant/revenue, filed three Tax Case Appeals (T.C.A.Nos.184, 188 and 190 of 2022) before the High Court of Judicature at Madras. These appeals challenged a common order dated February 13, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Madras 'C' Bench, in I.T.A.Nos.1783, 1784 and 1785/Chny/2017. The respondent in all appeals was M/s. All India Chess Federation. The appeals were filed under Section 260A of the Income Tax Act, 1961.

What were the issues?

The Tribunal had to decide three substantial questions of law: 1. Whether the ITAT was correct in holding that the assessee society functions as an arm of the Government of India under the Ministry of Youth Affairs and Sports. 2. Whether the ITAT was correct in holding that the assessee society falls within the scope of 'education' as per the amended provisions of Section 2(15) of the Income Tax Act. 3. Whether the ITAT was correct in holding that amounts applied outside India are exempt from taxation, disregarding Section 11(1)(a) of the Income Tax Act. The revenue argued that the ITAT erred in its findings on these points. The judgment does not record specific arguments from the assessee regarding these issues, nor does it name specific authorities, circulars, or precedents relied upon by either side for these questions.

Which sections of the Income-tax Act were involved?

Section 260A,Section 2(15),Section 11(1)(a)

AI-generated summary — verify with the full judgment below

T.C.A.Nos.184, 188 and 190 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 08.07.2022 CORAM THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos.184, 188 and 190 of 2022 & CMP.Nos.10700 & 10817 of 2022 Income Tax Officer, (Exemptions) Ward-2, Chennai 600 034 .. Appellant in all appeals Versus M/s. All India Chess Federation, Hall No.70, Jawaharlal Nehru Stadium, Sydenhams Road, Periamet, Chennai 600 003.

.. Respondent in all appeals Tax Case Appeal filed under Section 260 A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 13.02.2018 in I.T.A.Nos.1783, 1784 and 1785/Chny/2017. For Appellant in all appeals : Mr. J. Narayanaswamy, Standing Counsel For Respondent in all appeals : Mr.G.Baskar 1/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.184, 188 and 190 of 2022 COMMON JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) These Tax Case Appeals have been filed by the appellant / revenue, questioning the correctness of the common order dated 13.2.2018 passed by the Income Tax Appellate Tribunal Madras 'C' Bench, in I.T.A.Nos.1783, 1784 and 1785/Chny/2017 raising the following substantial questions of law; "1.Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in holding that the assessee society is an arm of Government of India functioning under the supervision of Ministry of Youth Affairs and Sports? 2. Whether, on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in holding that the assessee society will fall within the scope of the first limb of the amended provisions of section 2(15) of the Act viz., “education”? 3. whether, on the facts and circumstances of the case, the Tribunal was right in holding that the amount applied outside India shall be “exempt” from taxation in complete disregard of the express provisions of Section 11(1)(a) of the I.T.Act?' 2/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.184, 188 and 190 of 2022 2. When the matters were taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in these appeals are less than the threshold limit. 3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. Consequently, the connected miscellaneous petitions are closed. [R.M.D,J.] [M.S.Q., J.] 08.07.2022 msr

Index : Yes / No To The Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai. 3/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.184, 188 and 190 of 2022 R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. msr T.C.A.Nos.184, 188 and 190 of 2022 & CMP.Nos.10700 & 10817 of 2022 08.07.2022 4/4 https://www.mhc.tn.gov.in/judis

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