The Commissioner Of Income Tax vs Shri K.Sreejith
2021 Latest Caselaw 2132 Mad

                                                                                  TCA.No.47 of 2021


                                       IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED : 01.2.2021

                                                           CORAM

                                       THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM

                                                            and

                                         THE HONOURABLE MS.JUSTICE R.N.MANJULA

                                                Tax Case Appeal No.47 of 2021


                     The Commissioner of Income Tax,
                     Chennai-34                                                   ...Appellant
                                                             Vs
                     Shri K.Sreejith                                              ...Respondent

APPEAL under Section 260A of the Income Tax Act, 1961 against

the order dated 30.3.2017 passed by the Income Tax Appellate

Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.2926/Mds/2016

for the assessment year 2012-13.

For Appellant: Mrs.R.Hemalatha, SSC For Respondent : Mr.A.S.Sriraman

Judgment was delivered by T.S.SIVAGNANAM,J

This appeal has been filed by the Revenue under Section 260A of

the Income Tax Act, 1961 ('the Act' for brevity) challenging the order

dated 30.3.2017 made in I.T.A.No.2926/Mds/2016 on the file of the

https://www.mhc.tn.gov.in/judis/ TCA.No.47 of 2021

Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for

brevity) for the assessment year 2012-13.

2. The Revenue has filed this appeal by raising the following

substantial questions of law:

“1. Whether the Tribunal ought to have followed the decision of the Apex Court in the case of Palam Gas Agency Ltd., passed in Civil Appeal No.5512 of 2017 dated 03.5.2017 wherein it was held that failure to deduct tax at source would result in disallowance under Section 40(a)(ia) in respect of the sum paid or payable ?

2. Whether the disallowance made under Section 40(a)(ia) is attracted both for expenditure which had been paid during the year and also which is still payable at the end of the year or is it attracted only in respect of such expenditure claimed on which TDS has not been deducted and the amount in respect thereof stands payable as at the end of the year ? and

3. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the disallowance made under Section 40(a)(ia) is not proper ?”

https://www.mhc.tn.gov.in/judis/ TCA.No.47 of 2021

3. We have heard Mrs.R.Hemalatha, learned Senior Standing

Counsel appearing for the appellant/Revenue and Mr.A.S.Sriraman,

learned counsel accepting notice for the respondent/assessee.

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

08.8.2019 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 on account of the low tax effect. The substantial questions

of law raised are left open. In the event the tax effect is above the

threshold limit fixed in the said circular, liberty is granted to the

Revenue to file a petition before this Court to restore the appeal to be

heard and decided on merits. No costs.

01.2.2021 To The Income Tax Appellate Tribunal, 'A' Bench, Chennai.

RS

https://www.mhc.tn.gov.in/judis/ TCA.No.47 of 2021

T.S.SIVAGNANAM,J AND R.N.MANJULA,J

RS

TCA.No.47 of 2021

01.2.2021

https://www.mhc.tn.gov.in/judis/