M/S. LAKSHMI AMMAL MEMORIAL vs. INCOME TAC OFFIER

TCA.No.20 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 01.2.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.20 of 2019

M/s.Lakshmi Ammal Memorial Trust, Tirupur-1. ...Appellant Vs The Income Tax Officer, Ward I (6), Tirupur-2. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 05.7.2017 passed by the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai made in ITA.No.2852/Mds/2016 for the assessment year 2011-12. For Appellant: Mr.J.Balachander For Respondent: Mr.J.Narayanaswamy, SSC Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated 05.7.2017 made in ITA.No.2852/Mds/2016 on the file of the 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.20 of 2019 Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) for the assessment year 2011-12. 2. The appeal was admitted on 11.1.2019 on the following substantial questions of law: “i. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in denying exemption under Sections 11 to 13 of the Income Tax Act, 1961 for the appellant charitable trust for the assessment year 2011- 12 wherein the appellant charitable trust's incidental activity of running the kalyana mandapam and the earning profit from it is only an incidental activity of the appellant trust? And ii. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in denying exemption under Sections 11 to 13 of the Income Tax Act, 1961 when the property of the trust is exploited for meeting the expenditure towards the objects of the trust?” 3. We have heard Mr.J.Balachander, learned counsel appearing for the appellant/assessee and Mr.J.Narayanaswamy, learned Senior Standing Counsel appearing for the respondent/Revenue. 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.20 of 2019 4. The learned counsel on behalf of the appellant/assessee submits that the appellant/assessee already filed the declaration/ undertaking under the Vivad Se Vishwas Scheme on 11.12.2020 and is awaiting orders to be passed in Form No.3. 5. In the light of the subsequent event, the Competent Authority shall process the application/declaration in accordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) and pass appropriate orders as expeditiously as possible. The assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declaration filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a miscellaneous petition for restoration, the Registry shall place such petition before the appropriate Division Bench for orders. 6. The tax case appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law framed are left open. No costs.

01.2.2021 RS 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.20 of 2019 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS

To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2.The Income Tax Officer, Ward I (6), Tiruppur. TCA.No.20 of 2019 01.2.2021 4/4 https://www.mhc.tn.gov.in/judis/