The Tax Publishers2020 TaxPub(DT) 4538 (Mad-HC)

INCOME TAX ACT, 1961

Section 260A

Since the matter pertained to a registration under section 12AA, the question of withdrawing the appeal on the ground of low tax effect would not arise. Revenue cannot pursue the present appeal, when the appeal filed by the revenue against the main order passed by the Tribunal was dismissed.

Appeal (High Court) - Maintainability of appeal on low tax effect - Exemption under section 11 -

This appeal was directed against the order passed in Miscellaneous Petition and the appeal filed by the revenue, challenging the order passed by the Tribunal in the Main Appeal in T.C.A. No. 95 of 2013 was dismissed as withdrawn on the ground of low tax effect. Held: Since the matter pertained to a registration under section 12AA, 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 substantive appeal was no longer on the file of this Court and was dismissed. Appeal should not be withdrawn and accordingly, dismissed, then appropriate steps should have been taken immediately in the year 2016 to restore the appeal. Therefore, revenue cannot pursue the present appeal, when the appeal filed by revenue against the main order passed by Tribunal was dismissed.

Relied:CIT v. Peace Trust [Tax Case Appeal No.95 of 2013, dt. 29-1-2016], CIT v. Peace Trust [M.P. No.20(Mds)/2012 in ITA No.1949(Mds)/2009, dt. 20-4-2012] and Peace Trust v. CIT [ITA. No. 1949/Mds/2009, dt. 18-8-2011].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

IN THE MADRAS HIGH COURT

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