PRINCIPAL COMMISSIONER OF IN vs. THE ACTIVISTS FOR SOCIAL ALT

TCA.No.191 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.03.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.191 of 2021 Principal Commissioner of Income Tax (Exemptions), Exemption Ward, Trichy. ...Appellant Vs M/s.The Activists for Social Alternative Trust, No.2-A, Sathiyam Illam, Alli Street, Annamalai Nagar, Trichy - 620 018. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 13.10.2017 made in ITA.No.395/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench for the assessment year 2011-12. For Appellant: Mr.J.Narayanasamy, SSC For Respondent: Mr.A.S.Sriraman 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.191 of 2021 JUDGMENT (Delivered by

T.S.Sivagnanam,J

) This appeal, filed by the Revenue, is directed against the order dated 13.10.2017 made in ITA.No.395/Mds/2015 on the file of the Income Tax Appellate Tribunal, Madras 'B' Bench (for brevity, the Tribunal) for the assessment year 2011-12. 2. The appellant-Revenue has raised the following substantial questions of law for consideration: "1. Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is allowing the assessee's claim of Rs.5,77,86,018/- as corpus donation particularly when there is no specific direction from the donors regarding quantum of contribution to be part of the corpus of the trust or institution as requires u/s 11(1)(d) of the Income Tax Act, 1961? 2. Whether on the facts and in the circumstances of the case and in law, the ITAT was correct in holding that an amount of Rs.5,77,86,017/- received by the assessee out of total receipt was to be treated as corpus donation, as the narration on the donation receipts stated that part of the amount may be used for the corpus of the trust, not appreciating that absence of quantification of contribution forming part of corpus may lead to manipulation of Income & 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.191 of 2021 Expenditure, and in ascertaining exact income exempt u/s 11 and 12 of the Act? and 3. Whether on the facts and in the circumstances of the case and in law, the ITAT is correct in not adjudicating the ground raised by the department on merit and in not interfering with the order of the Ld. CIT(A) who held that the A.O. is not justified in adding an amount of Rs.42,25,283/- in case of the assessee as the same has been derived from "Silver Jubilee Programme Fund" under receipts and accordingly shown as unutilised amount separately in the balance sheet?" 3. We have heard Mr.J.Narayanasamy, learned Senior Standing Counsel for the appellant-Revenue and Mr.A.S.Sriraman, learned counsel appearing for the respondent. 4. The learned Senior Standing Counsel appearing for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.191 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to file a petition before this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S.,J.) (R.N.M.,J.) 08.03.2021 Index: Yes/No Internet:Yes/No hvk To 1. The Income Tax Appellate Tribunal, 'B' Bench, Chennai. 2. The Principal Commissioner of Income Tax (Exemptions), Exemption Ward, Trichy. TCA.No.191 of 2021 4/4 https://www.mhc.tn.gov.in/judis/