COMMISSIONER OF INCOME TAX-I vs. M/S.PEACE TRUST

T.C.A.No.783 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 08.10.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN T.C.A.No.783 of 2019 Commissioner of Income Tax-I, 2, V.P.Ratnasamy Road, Madurai – 625 002. .. Appellant Versus M/s.Peace Trust, High Grounds, Anjukootuvillai Road, Kanyakumari, PAN:AAB TP 3446 G .. Respondent Prayer:- 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, dated 20.04.2012 made in M.P.No.20/Mds/2012 in I.T.A.No.1949/Mds/2009. For Appellant : Mr.J.Narayanasamy

Senior Standing counsel For Respondent : Mr.N.Quadir Hoseyn 1/6 http://www.judis.nic.in T.C.A.No.783 of 2019 JUDGMENT [Order of the Court was made by

T.S.SIVAGNANAM

, J.]

This appeal has been filed by the Revenue under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), challenging the order dated 20.04.2012 passed by the Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) in M.P.No.20/(Mds)/2012 in I.T.A.No.1949/Mds/2009. The appeal has been filed raising the following Substantial Questions of Law: 1. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in granting the registration under Section 12AA over looking the provision to Section 12A[1][a][i] of the Income Tax Act? 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee is eligible for registration under Section 12AA of the Act, from the date of inception namely 19-06-1986 when there is no valid reason given by the assessee for the delay in filing the application for registration? 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in dismissing the department M.P.No.20/M/2012 without considering the provision of Section 12A[1][a] of the Act? 2/6 http://www.judis.nic.in T.C.A.No.783 of 2019 2. We have heard Mr.J.Narayanasamy, learned Senior Standing counsel for the appellant and Mr.N.Quadir Hoseyn, learned counsel appearing for the respondent. 3. As rightly pointed out by the learned counsel for the respondent/assessee, this appeal is directed against the order passed in the Miscellaneous Petition and the appeal filed by the Revenue, challenging the order passed by the Tribunal in the Main Appeal dated 18.08.2011 in T.C.A.No.95 of 2013 was dismissed as withdrawn by judgment dated 29.01.2016 on the ground of low tax effect. 4. It is the submission of Mr.J.Narayanasamy that since the matter pertains to a registration under Section 12AA of the Act, the question of withdrawing the appeal on the ground of low tax effect would not arise. This submission cannot be considered at this juncture because the substantive appeal namely T.C.A.No.95/2013 is no longer on the file of this Court and has been dismissed. The reasons may be many for such dismissal. If at all, the Revenue is of the view that the appeal should not be withdrawn 3/6 http://www.judis.nic.in T.C.A.No.783 of 2019 and accordingly, dismissed, then appropriate steps should have been taken immediately in the year 2016 to restore the appeal. Thus, there is nothing on record before us today to indicate that such steps have been taken. Therefore, in our view, the Revenue cannot pursue the present appeal, when the appeal filed by the Revenue against the main order passed by the Tribunal was dismissed. 5. Thus, for the above reasons, this Tax Case Appeal is dismissed and the Substantial Questions of Law are left open. No costs. (T.S.S.,J) (V.B.S.,J) 08.10.2020 Kak Index: Yes / No Internet: Yes / No Speaking Order/Non-Speaking Order 4/6 http://www.judis.nic.in T.C.A.No.783 of 2019 To The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 5/6 http://www.judis.nic.in T.C.A.No.783 of 2019 T.S.SIVAGNANAM, J. AND V.BHAVANI SUBBAROYAN, J. Kak T.C.A.No.783 of 2019 08.10.2020 6/6 http://www.judis.nic.in