PRINCIPAL COMMISSIONER OF IN vs. M/S.MADRAS SOCIAL SERVICE SO

T.C.A.No.365 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 15.07.2021 CORAM THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA T.C.A.No.365 of 2021 Principal Commissioner of Income Tax (Exemptions), Chennai Circle, Aayakar Bhavan, Annexe Building, III Floor, 121, M.G. Road, Nungambakkam, Chennai – 600 034. ... Appellant Vs. M/s.Madras Social Service Society, No.329, Old No.128, Kolping Tower, II Floor, TTK Road, Alwarpet, Chennai – 600 018. ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, “C” Bench, dated 16.02.2017 in I.TA.No.2419/Mds/2016, Assessment Year 2012-13. Page 1/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.365 of 2021 For Appellant : Mr.J.Narayanasamy Senior Standing Counsel For Respondent : Mr.M.P.Senthil Kumar JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.J.Narayanasamy, learned Senior Standing Counsel for the appellant/Revenue and Mr.M.P.Senthil Kumar, learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 16.02.2017 made in I.TA.No.2419/Mds/2016 on the file of the Income Tax Appellate Tribunal, Chennai, “C” Bench (for brevity, the Tribunal) for the Assessment Year 2012-13. 3.The appellant/Revenue has raised the following substantial questions of law in the above appeal : Page 2/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.365 of 2021 “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 is eligible for exemption u/s.11 of the I.T.Act, in complete disregard to the facts of the case and the provisions of newly inserted provisos to Section 2(15) of the IT Act? 2.Whether on the facts and in the circumstances of the case and in law, the ITAT was right in law in holding that the activities are charitable even though the objects and activities of the assessee are in the nature of 'advancement of general public utility' and the aggregate receipts during the previous year exceeded Rs.25 lakhs? 3.Whether on the facts and in the circumstances of the case and in law, the ITAT was right in law in holding that the activities are charitable without giving a finding as to under which limb of Sec.2(15) the activities of the assessee would fall? Page 3/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.365 of 2021 4.Whether on the facts and in the circumstances of the case and in law, the ITAT erred in not following its own earlier decision in ITO vs. Kalanjiam Development and Financial Services in ITA No.625/Mds/2015 dated 07.08.2015 on identical issue?” 4.The learned Senior Standing Counsel 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. 5.In the light of the said submissions, the above Tax Case Appeal is 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 this case is above the threshold limit fixed in the said Circular, liberty is granted to the Revenue to make a mention to this Page 4/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.365 of 2021 Court to restore the appeal to be heard and decided on merits. No costs. [M.D., J.] [R.H., J.] 15.07.2021

Index : Yes/No Internet : Yes

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To The Income Tax Appellate Tribunal, Chennai, “C” Bench Page 5/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No.365 of 2021 M.DURAISWAMY, J. and R. HEMALATHA, J. mkn T.C.A.No.365 of 2021 15.07.2021 Page 6/6 https://www.mhc.tn.gov.in/judis/