COMMISSIONER OF INCOME TAX vs. P. MURUGESAN

TCA/605/2017HC Madras24 August 2022Bench: Hon`ble Mr Justice R. MAHADEVAN4 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court noted the submission by the Revenue regarding CBDT Circular No.17/2019, which mandates that appeals shall not be filed or pursued by the Department before the High Court if the tax effect does not exceed Rs.1,00,00,000/-. The Revenue confirmed that the tax effect in the present appeal was below this monetary limit. Consequently, the High Court dismissed the appeal as withdrawn, while explicitly stating that the substantial questions of law were kept open for determination in an appropriate case. No costs were awarded. The specific findings of the ITAT on the merits of the additions and deletions were not adjudicated by the High Court due to the withdrawal of the appeal.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed an appeal under Section 260A of the Income Tax Act, 1961, against the order dated 14.10.2015 passed by the Income Tax Appellate Tribunal (ITAT), Madras 'C' Bench, in I.T.A.No.2036/Mds/2013. The appeal pertained to assessment year 2006-07 and concerned deletions made by the ITAT in the hands of the assessee, Shri P. Murugesan, who is a trustee. The deletions related to additions made for the generation of unaccounted money in a trust and gifts of educational institutions.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in deleting additions relating to the generation of unaccounted money in the trust made in the hands of the trustee, on the ground that the said addition was confirmed in the hands of the trust, even though the trust had not accepted the additions and the case had not reached finality? (Question of law) 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in deleting additions under the head 'other income' with respect to the gift of educational institutions at Natham to Titan Educational Trust and the generation of unaccounted money/capitation fee collected by the trustee, on the ground that the said addition was confirmed in the hands of the trust, even though the trust had not accepted the additions and the case had not reached finality? (Question of law) Assessee's arguments: Not recorded. Revenue's arguments: The Revenue brought to the notice of the High Court Circular No.17/2019 dated 08.08.2019 issued by the CBDT, stipulating that appeals shall not be filed/pursued where the tax effect does not exceed Rs.1,00,00,000/-. The Revenue submitted that the tax effect in this appeal was less than the threshold limit.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.605 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 24.08.2022 CORAM : THE HON'BLE MR. JUSTICE R. MAHADEVAN AND THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.605 of 2017 Commissioner of Income Tax, Chennai. ... Appellant Versus Shri P.Murugesan, No.35-36, IInd Street, Natarajapuram North Colony, Thanjavur. ... 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 14.10.2015 in I.T.A.No.2036/Mds/2013. For Appellant : M/s.M.Swaminathan &

V. Pushpa Standing Counsel Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.605 of 2017 J U D G M E N T (Judgment was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 14.10.2015 passed by the Income Tax Appellate Tribunal, Madras 'C' Bench, in I.T.A.No.2036/Mds/2013, relating to the assessment year 2006-07, by raising the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the Tribunal was right in deleting the additions relating to the generation of unaccounted money in the trust made in the hands of the trustee on the ground that the said addition was confirmed in the hands of the trust, even though the trust had not accepted the additions and the case had not reached finality. (ii) Whether on the facts and in the circumstances of the case the Tribunal was right in deleting (i) the additions under the head other income with respect to the gift of educational institutions at Natham to Titan Educational Trust and (ii) generation of unaccounted money/capitation fee collected by the trustee on the ground that the said addition was confirmed in the hands of the trust, even though the trust had not accepted the additions and the case had not reached finality." Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.605 of 2017 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 appeal 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.) 24.08.2022 r n s

Internet : Yes.

Index : Yes / No. Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.605 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. r n s To 1. The Income Tax Appellate Tribunal Madras 'C' Bench. 2. The Commissioner of Income Tax, (Appeals), Tiruchirapalli - 1. 3. The Assistant Commissioner of Income-tax, Company Circle-II, Tiruchirappalli. T.C.A.No.605 of 2017 24.08.2022 Page 4/4 https://www.mhc.tn.gov.in/judis

Recent GST High Court judgments

Search GST case law →