PRINCIPAL COMMISSIONER OF vs. ADHIPARASAKTHI CHARITABLE

TCA.No.562 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 08.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 562 of 2018 Principal Commissioner of Income Tax Central 2 No.108, Mahatma Gandhi Road, Chennai 600 034

.. Appellant Versus M/s.Adhiparasakthi Charitable Medical Educational and Cultural Trust, GST Road, Cheyyur, Melmaruvathur, Kanchipuram District

.. Respondent Tax Case Appeal filed under Section 260 A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras “C” Bench, Chennai dated 29.3.2017 passed in ITA.No.2214/Mds/2016 for the assessment year 2012-13. For Appellant : Mr.Karthik Ranganathan Standing Counsel For Respondent : Mr.Sriram For Mr.Sridhar 1/4 https://www.mhc.tn.gov.in/judis TCA.No.562 of 2018 JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 29.03.2017 passed by the Income Tax Appellate Tribunal Madras “C” Bench Chennai in ITA.No.2214/Mds/2016 for the assessment year 2012-13, on the following substantial questions of law;

' 1.Whether the Tribunal is correct in law in holding that profit arising out of sale of text books to the students would be part of profit of Educational Institutions and therefore the provisions of section 2(15) of the Income Tax Act are not applicable, without considering the profit earning intention of such activity and quantum of profit earned by the Trust? 2. Whether the Tribunal is correct in law in holding that the sale of text books by the Trust to the students does not constitute Commercial Activity but part of Educational Activity within the meaning of proviso to Section 2(15) of the Income Tax Act, when the Assessee Trust has made huge 2/4 https://www.mhc.tn.gov.in/judis TCA.No.562 of 2018 profit out of 43.42% on sale of text books under the name of 'Charitable Trust”? 2. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. [R.M.D,J.] [M.S.Q., J.] 08.08.2022 msr

Index : Yes / No 3/4 https://www.mhc.tn.gov.in/judis TCA.No.562 of 2018 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. Principal Commissioner of Income Tax Central 2 No.108, Mahatma Gandhi Road, Chennai 600 034. 2. The Assistant Commissioner of Income Tax, Central Circle 2 (2), Chennai. 3. The Commissioner of Income Tax, Appeals-18 Chennai-34 4. The Income Tax Appellate Tribunal Madras “C” Bench, Chennai T.C.A.No. 562 of 2018 08.08.2022 4/4 https://www.mhc.tn.gov.in/judis