Madras High Court
Commissioner Of Income Tax vs M/S.Council For Leather Exports on 20 July, 2021
Author: M.Duraiswamy
Bench: M.Duraiswamy, R. Hemalatha
T.C.A.No.337 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 20.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.337 of 2016
Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Council for Leather Exports
CMDA Tower II 3rd Floor
Gandhi Irwin Bridge Road,
Egmore, Chennai - 600 008. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“A” Bench, dated 26.06.2015 in I.TA.No.1192/Mds/2014, Assessment
Year 2010-11.
For Appellant : Mr.J.Narayanaswamy
Senior Standing Counsel
For Respondent : Mr.R.Venkat Narayanan
for M/s.Subbaraya Aiyar Padmanabhan
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https://www.mhc.tn.gov.in/judis/
T.C.A.No.337 of 2016
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.J.Narayanaswamy, learned Senior Standing Counsel for the appellant/Revenue and Mr.R.Venkat Narayanan for M/s.Subbaraya Aiyar Padmanabhan, learned counsel for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 26.06.2015 made in I.TA.No.1192/Mds/2014 on the file of the Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the Tribunal) for the Assessment Year 2010-11.
3.The appeal was admitted on the following substantial question of law:
“Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee which has objects to Page 2/5 https://www.mhc.tn.gov.in/judis/ T.C.A.No.337 of 2016 promote and support the leather business industry, is not for profit, but to do charity through advancement of object of general public utility and the assessee is existing for charitable purpose as per Section 2(15) of the Act and consequently, the assessee is entitled for exemption under Section 10(23C)(iv)?”
4.The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 crore. It is further submitted that the tax effect in this case is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal is dismissed as withdrawn on account of the Low Tax Effect. The substantial question of law framed is left open. In the event the tax effect in this case is above the threshold limit fixed in the said Circular, liberty is granted to the Revenue to make a mention to this Court to Page 3/5 https://www.mhc.tn.gov.in/judis/ T.C.A.No.337 of 2016 restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
20.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “A” Bench Page 4/5 https://www.mhc.tn.gov.in/judis/ T.C.A.No.337 of 2016 M.DURAISWAMY, J.
and R. HEMALATHA, J.
mkn T.C.A.No.337 of 2016 20.07.2021 Page 5/5 https://www.mhc.tn.gov.in/judis/