COMMISSIONER OF INCOME TAX vs. M/S.COUNCIL FOR LEATHER EXPORTS

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TCA/526/2021HC Madras24 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that the Revenue's counsel submitted that these Tax Case Appeals are covered under the Low Tax Effect as per Circular No.9/2024 dated 17.09.2024. Recording this submission, the Court dismissed the appeals on the ground of Low Tax Effect. The substantial questions of law raised in these appeals were expressly kept open to be decided at a later point in time. No order as to costs was made. Consequently, the connected Civil Miscellaneous Petition was closed.

What were the facts?

These are two Tax Case Appeals (TCAs) filed by the Commissioner of Income Tax, Chennai (Revenue) against the Income Tax Appellate Tribunal (ITAT), Madras 'A' Bench. The appeals challenge the ITAT's orders dated 28.05.2020 in ITA Nos. 1401/Chny/2019 and 1399/Chny/2019. The assessee is M/s. Council for Leather Exports. The appeals were admitted on 29.11.2021 on a substantial question of law concerning the assessee's eligibility for exemption under Section 10(23C)(iv) of the Income Tax Act, 1961.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee, which has an object to promote and support the leather business industry, is not for profit, but to do charity through the advancement of an object of general public utility, and thus exists for a charitable purpose as per Section 2(15) of the Act, and consequently is entitled to exemption under Section 10(23C)(iv) of the Act? Assessee's Contention: The assessee argued that its object of promoting and supporting the leather business industry constitutes an object of general public utility and is charitable in nature, entitling it to exemption under Section 10(23C)(iv). Revenue's Contention: The Revenue contended that the assessee's activities were not for charitable purposes as defined under Section 2(15) and therefore not eligible for exemption under Section 10(23C)(iv).

Which sections of the Income-tax Act were involved?

Section 260A,Section 2(15),Section 10(23C)(iv)

AI-generated summary — verify with the full judgment below

T.C.A.Nos. 526 & 530 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 24.10.2024 CORAM : THE HONOURABLE MR.JUSTICE R. SURESH KUMAR AND THE HONOURABLE MR.JUSTICE C. SARAVANAN T.C.A.Nos. 526 & 530 of 2021 Commissioner of Income Tax Chennai. .. Appellant in both TCAs Vs. M/s.Council for leather Exports CMDA Tower II 3rd Floor Gandhi Irwin Bridge Road Egmore Chennai 600 008 PAN AAACC 4697 G. .. Respondent in both TCAs Prayer in T.C.A.No.526 of 2021: Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras "A" Bench dated 28.05.2020 in I.T.A.No.1401/Chny/2019; and Prayer in T.C.A.No.530 of 2021: Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras "A" Bench dated 28.05.2020 in I.T.A.No.1399/Chny/2019. For the Appellant Ms.V.Pushpa in both TCAs : Senior Standing Counsel For the Respondents Mr.R.Venkatanaryanan for in both TCAs : Mr.Subbaraya

Iyer Padmanabhan Page 1 of 3 https://www.mhc.tn.gov.in/judis T.C.A.Nos. 526 & 530 of 2021 COMMON JUDGMENT (Order of the Court was made by R.SURESH KUMAR, J.) Both these Tax Case Appeals were admitted by this Court on 29.11.2021 on the following substantial question of law:- “Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee which has an object to promote and support the leather business industry, is not for profit, but to do charity through advancement of object of general public utility and the assessee is existing for charitable purpose as per Section 2(15) of the Act and consequently is entitled for exemption u/s. 10(23C)(iv) of the Act?” 2. It is submitted by Ms.V.Pushpa, learned Senior Standing Counsel appearing for the appellant Revenue that all these Tax Case Appeals are covered under the Low Tax Effect as per the recent Circular dated 17.09.2024, in Circular No.9/2024. 3. Recording the same, these appeals stand dismissed as Low Tax Effect. The questions of law raised in these appeals are kept open to be decided at the later point of time. There shall be no order as to costs. Consequently, C.M.P.No.18933 of 2021 is closed. (R.S.K., J.) (C.S.N, J) 24.10.2024 Neutral Citation:Yes/No drm Page 2 of 3 https://www.mhc.tn.gov.in/judis T.C.A.Nos. 526 & 530 of 2021 R. SURESH KUMAR, J. AND C. SARAVANAN

, J.

(drm) T.C.A.Nos. 526 & 530 of 2021 24.10.2024

Page 3 of 3 https://www.mhc.tn.gov.in/judis

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