Director of Income Tax Exemption vs. M/s.Tamil Nadu Tennis Association

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TCA/66/2022HC Madras23 October 2024Bench: Honourable Mr Justice R. SURESH KUMAR4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted the submission made by the learned Standing Counsel for the appellant Revenue regarding CBDT's Circular No.9 of 2024. This circular indicates that the tax effect in the instant case is below the monetary limit prescribed for filing appeals. Consequently, the Court decided to dismiss the Tax Case Appeal on the grounds of low tax effect. The substantial questions of law raised in the appeal were expressly kept open for adjudication at an appropriate stage. No costs were awarded, and the connected miscellaneous petition was closed. The specific finding of the ITAT on the issue of whether the assessee society falls within the scope of 'education' under Section 2(15) was not adjudicated by the High Court.

What were the facts?

The Revenue, the Director of Income Tax (Exemption), filed a Tax Case Appeal before the High Court of Judicature at Madras, challenging an order dated January 18, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Chennai Bench. The appeal pertains to the assessment year(s) not explicitly stated but concerns the respondent assessee, M/s. Tamil Nadu Tennis Association. The core of the dispute revolves around whether the assessee society falls within the scope of the first limb of the amended provisions of Section 2(15) of the Income Tax Act, 1961, specifically relating to 'education'. The procedural history indicates that the ITAT had previously passed an order in ITA.No.2559/2016, which is now under challenge.

What were the issues?

The Tribunal had to decide the following substantial question of law: 1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee Society will fall within the scope of the first limb of the amended provisions of Section 2(15) of the Act viz., "education"? The Revenue contended that the ITAT's order was incorrect. The judgment does not record specific arguments from the assessee. However, the Revenue's submission before the High Court was based on CBDT's Circular No.9 of 2024 dated 17.09.2024, which states that the tax effect in this case is less than the monetary limit imposed for filing appeals. Therefore, the Revenue requested that the appeal be disposed of, keeping the substantial questions of law open for future adjudication.

Which sections of the Income-tax Act were involved?

Section 2(15),Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.66 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 23.10.2024 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMAR AND THE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.66 of 2022 and C.M.P.No.2311 of 2022 Director of Income Tax Exemption No.121, Nungambakkam High Road Chennai 600 034. .... Appellant Vs. M/s.Tamil Nadu Tennis Association SDAT Tennis Stadium, Lake Area Nungambakkam, Chennai 600 034 PAN L AAAAT0166H .... Respondent ----- Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'B' Bench Chennai, dated 18.01.2018 in ITA.No.2559/2016. For Appellant : Mrs.V.Pushpa Senior Standing Counsel For Respondent : Mr.A.S.Sriraman J U D G M E N T (Delivered by R.SURESH KUMAR, J.) This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Chennai by raising the following substantial question of law: 1 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.66 of 2022 Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee Society will fall within the scope of the first limb of the amended provisions of Section 2(15) of the Act viz., "education"? 2. It is brought to our notice by the learned Standing Counsel for the appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of 2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit imposed and therefore, the appeal can be disposed of, keeping the substantial questions of law raised in this appeal open for adjudication at a later point of time. 3. Recording the aforesaid submission made by the learned Standing Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low tax effect, keeping open the substantial questions of law for adjudication at appropriate stage. No costs. Consequently, connected miscellaneous petition is closed. (R.S.K.,J.) (C.S.N.,J.) 23.10.2024 NCS : Yes/No

KST To 2 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.66 of 2022 The Income Tax Appellate Tribunal 'B' Bench, Chennai. 3 of 4 https://www.mhc.tn.gov.in/judis T.C.A.No.66 of 2022 R.SURESH KUMAR, J. AND C.SARAVANAN, J. KST T.C.A.No.66 of 2022 23.10.2024 4 of 4 https://www.mhc.tn.gov.in/judis

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