THE COMMISSIONER OF INCOME T vs. M/S THE RAILWAY EMPLOYEES CO

T.C.A.Nos.273 to 276 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY T.C.A.Nos.273 to 276 of 2021 and C.M.P.Nos.7778, 7781 & 7782 of 2021 The Commissioner of Income Tax, Chennai. ... Appellant in all appeals Vs. M/s.The Railway Employees Co-op Credit Society Ltd., P.B.No.259/LB, Ashok Vihar Complex, Old Zoo Road, Near Central Railway Station, Chennai – 600 003. ... Respondent in all appeals Tax Case Appeals in T.C.A.Nos.273 to 276 of 2021 preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, “A” Bench, dated 15.03.2017

I.T.A.Nos.2239/Mds/2016,

2240/Mds/2016, 556/Mds/2016 and 557/Mds/2016, respectively for the Assessment Years 2008-09, 2009-10, 2012-13 and 2013-14 respectively. Page 1/6 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.273 to 276 of 2021 For Appellant : Mr.T.Ravikumar Senior Standing Counsel in all appeals For Respondent : Mr.G.Baskar in all appeals C O M M O N J U D G M E N T (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.T.Ravikumar, learned Senior Standing Counsel for the appellant/Revenue and Mr.G.Baskar, learned counsel for the respondent/assessee. 2.The above appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act), are directed against the order dated 15.03.2017 made in I.T.A.Nos.2239/Mds/2016, 2240/Mds/2016, 556/Mds/2016 and 557/Mds/2016, on the file of the Income Tax Appellate Tribunal, Madras, “A” Bench (for brevity, the Tribunal) for the Assessment Years 2008-09, 2009-10, 2012-13 and 2013-14 respectively. Page 2/6 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.273 to 276 of 2021 3.The appellant/Revenue has raised the following substantial questions of law in the above appeals : “1.Whether the Tribunal was justified in holding that the Assessee was eligible to claim deduction u/s.80P(2)(a)(i) of the I.T. Act on the interest income earned from the investment made with the Bank? 2.Whether the Tribunal ought to have applied the decision of the Apex Court in the case of Totgar's Co- operative Sales Society Ltd. v. ITO reported in 322 ITR 283 which was also confirmed in Review Petitions filed wherein it was held that the interest income earned from the deposits was to be treated as income from other sources only and therefore deduction u/s.80P(2)(a)(i) could not be granted?” 4.The learned Senior Standing Counsel for the appellant submits that the above appeals are 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 these Page 3/6 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.273 to 276 of 2021 cases is less than the threshold limit. 5.In the light of the said submissions, the above Tax Case Appeals are dismissed as withdrawn on account of the Low Tax Effect. The substantial questions of law framed are left open. In the event the tax effect in these cases is above the threshold limit fixed in the said Circular, liberty is granted to the Revenue to make a mention to this Court to restore the above appeals to be heard and decided on merits. No costs. Consequently, connected miscellaneous petitions are closed. [M.D., J.] [K.R., J.] 22.04.2021

Index : Yes/No Internet : Yes

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To Page 4/6 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.273 to 276 of 2021 1.The Income Tax Appellate Tribunal, Madras, “A” Bench. 2.The Commissioner of Income Tax, Chennai. Page 5/6 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.273 to 276 of 2021 M. DURAISWAMY, J. and KRISHNAN RAMASAMY, J. mkn T.C.A.Nos.273 to 276 of 2021 22.04.2021 Page 6/6 https://www.mhc.tn.gov.in/judis/