PRINCIPAL COMMISSIONER OF IN vs. M/S.GOLDEN SHELTERS PVT LTD

TCA/621/2021HC Madras12 January 2022Bench: Hon`ble Mr Justice R. MAHADEVAN4 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court did not decide the substantial questions of law on merits. The learned counsel for the appellant/Revenue brought to the court's notice CBDT Circular No. 17/2019 dated 08.08.2019, which stipulates 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/-. It was submitted that the tax effect in these appeals was less than this threshold limit. Consequently, the High Court dismissed the present appeals as withdrawn, in light of the submission regarding the tax effect being below the monetary limit. The substantial questions of law were kept open for determination in appropriate cases. No costs were awarded.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, filed four Tax Case Appeals before the High Court of Judicature at Madras against an order dated 25.04.2017 passed by the Income Tax Appellate Tribunal (ITAT), Madras 'B' Bench. These appeals concerned assessment years 2005-06, 2007-08, and 2010-11, and challenged the ITAT's confirmation of the Commissioner of Income Tax (Appeals) [CIT(A)] order deleting additions made towards donations. The disputed amounts involved donations totaling Rs.83,63,750/- and a further donation of Rs.2.57 crore received from Anugraha Charitable Trust for the construction of a mediation hall. The appeals also questioned the quashing of re-assessment proceedings by the CIT(A) and affirmed by the ITAT.

What were the issues?

The High Court was to decide the following substantial questions of law: 1. Whether, on the facts and in the circumstances of the case and in law, the ITAT was correct in confirming the order of the CIT(A) deleting additions made towards donations amounting to Rs.83,63,750/-? 2. Whether, on the facts and in the circumstances of the case and in law, the ITAT was correct in affirming the order of the CIT(A), quashing the re-assessment proceedings? 3. Whether, on the facts and in the circumstances of the case and in law, the ITAT was correct in affirming the order of the CIT(A), deleting the addition of donation of Rs.2.57 crore received from Anugraha Charitable Trust for construction of mediation hall by holding the genuineness, identity and creditworthiness of M/s. Anugraha Charitable Trust to be in order? The Revenue contended that the ITAT erred in its findings. The Respondent (assessee) did not record any specific arguments in the judgment provided, but their position was implicitly supported by the CIT(A)'s orders which were upheld by the ITAT.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Tax Case Appeal Nos. 621 & 622 of 2021 and 2 & 3 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 12.01.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal Nos. 621 & 622 of 2021 and 2 & 3 of 2022 and C.M.P.Nos. 21740 & 21747 of 2021 and 54 of 2022 Principal Commissioner of Income Tax Corporate Circle -2 (2) Nungambakkam, Chennai - 600 034. ...Appellant in all Cases Versus M/s. Golden Shelters Pvt Ltd Rutland Towers, IV Floor No.33, Shafee Mohammed Road Opp. Greams Road Chennai – 600 006 PAN: AABCG9567C ...Respondent in all Cases Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the common order dated 25.04.2017 passed by the Income Tax Appellate Tribunal, Madras “B” Bench, in I.T.A.Nos.2341, 2343, 2344 and 2345/Mds/2016. For Appellant : Mr.Karthik Ranganathan (in all cases) 1/4 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos. 621 & 622 of 2021 and 2 & 3 of 2022 For Respondent : Mr. Narayanasamy (in all cases) COMMON JUDGMENT (Judgment was delivered by R. MAHADEVAN, J.) These tax case appeals have been filed by the appellant / Revenue, calling in question the correctness of the order dated 25.04.2017 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai, in I.T.A.Nos.2341, 2343, 2344 and 2345/Mds/2016, relating to the assessment years 2005-06, 2007-08 and 2010- 11, by raising the following substantial questions of law:- “(i) Whether on the facts and in the circumstances of the case and in law, the ITAT was correct in confirming the order of the CIT(A) deleting the additions made towards additions made towards donations amounting to Rs.83,63,750/-? (ii) Whether on the facts and in the circumstances of the case and in law, the ITAT was correct in affirming the order of the CIT(A), quashing the re-assessment proceedings? (iii) Whether on the facts and in the circumstances of the case and in law, the ITAT was correct in affirming the order of the CIT(A), deleting the addition of donation of Rs.2.57 cr. Received from Anugraha Charitable Trust for construction of mediation hall by holding the genuineness, identity and creditworthiness of M/s.Anugraha Charitable Trust to be in order?” 2. When the matters were 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, 2/4 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos. 621 & 622 of 2021 and 2 & 3 of 2022 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 these appeals 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 appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. Consequently, connected miscellaneous petitions are closed. [R.M.D, J.] [M.S.Q, J.] 12.01.2022

Internet : Yes

Index : Yes / No dhk 3/4 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos. 621 & 622 of 2021 and 2 & 3 of 2022 R. MAHADEVAN, J. AND MOHAMMED SHAFFIQ, J. dhk To 1. Principal Commissioner of Income Tax Corporate Circle -2 (2) Nungambakkam, Chennai - 600 034. 2. The Income Tax Appellate Tribunal, Madras “B” Bench. 3.The Commissioner of Income Tax (Appeals) Chennai TCA Nos. 621 & 622 of 2021 and 2 & 3 of 2022 12.01.2022 4/4 https://www.mhc.tn.gov.in/judis

Recent GST High Court judgments

Search GST case law →