Madras High Court
Commissioner Of Income Tax vs M/S.Celebrity Fashions Ltd on 1 February, 2021
T.C.A.No.1026 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 01.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.1026 of 2014
Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Celebrity Fashions Ltd.,
SDF-IV, 3rd Main Road,
MEPZ-SEZ, Tambaram,
Chennai – 600 045. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“D” Bench, dated 30.04.2012 in I.TA.No.1318/Mds/2011, Assessment
Year 2002-03.
For Appellant : Mr.T.Ravi Kumar,
Senior Standing Counsel
For Respondent : Mr.Koushik
for Mr.S.Sridhar
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T.C.A.No.1026 of 2014
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.T.Ravi Kumar, learned Senior Standing
Counsel for the appellant/Revenue and Mr.Koushik, 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 30.04.2012 made in I.TA.No.1318/Mds/2011 on the file of the
Income Tax Appellate Tribunal, Chennai, “D” Bench (for brevity, the
Tribunal) for the Assessment Year 2002-03.
3.The appeal was admitted on 23.12.2014 on the following
substantial questions of law:
“1)Whether on the facts and in the
circumstances of the case, the Income Tax Appellate
Tribunal was right in holding that disallowance
under Section 40(a)(ia) was not proper especially
when the assessee has deducted TDS for payment
made on commission and brokerage on 12.12.2004
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T.C.A.No.1026 of 2014
and 10.02.2006 but had failed to remit the same into
the Government account within the last day of the
previous year?
2)Whether on the facts and circumstances of
the case, the Income Tax Appellate Tribunal was
right in not considering the amended provisions of
Section 40(a)(ia) as per Finance Act, 2008 as per
which the TDS amount is to be remitted before the
last day of the previous year?
3)Whether the Tribunal was right in upholding
the order of CIT(A) in restricting the disallowance to
5% made under Section 14A read with Rule 8D for
the assessment year 2006-07 and 2007-08 on the
dividend income earned is proper?”
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.
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T.C.A.No.1026 of 2014
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 questions 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 restore the appeal to be heard and decided on merits. No costs.
[M.D., J.] [T.V.T.S., J.]
Index : Yes/No 01.02.2021
Internet : Yes
va
To
The Income Tax Appellate Tribunal, Chennai, “D” Bench
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T.C.A.No.1026 of 2014
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
va
T.C.A.No.1026 of 2014
01.02.2021
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