Madras High Court
The Commissioner Of Income Tax vs M/S.Arjun Technologies Ltd on 2 February, 2021
TCA.Nos.103, 107 & 108 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 02.02.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
Tax Case Appeal Nos.103, 107 & 108 of 2021
and
C.M.P.Nos.1786 & 1787 of 2021
The Commissioner of Income Tax,
Chennai. ...Appellant in all cases
Vs
M/s.Arjun Technologies Ltd.,
Park View, II Floor,
94(85), G.N.Chetty Road, T.Nagar,
Chennai - 600 017.
PAN: AAACA930C ...Respondent in all cases
COMMON PRAYER: Appeals under Section 260A of the Income Tax Act,
1961 against the order dated 07.02.2017 made in ITA.No.1573/Mds/2014
for the assessment year 2007-08, ITA.No.1382/Mds/2013 for the
assessment year 2008-09 and ITA.No.1381/Mds/2013 for the assessment
year 2006-07 on the file of the Income Tax Appellate Tribunal, Madras 'A'
Bench, Chennai.
https://www.mhc.tn.gov.in/judis/
TCA.Nos.103, 107 & 108 of 2021
(in all cases)
For Appellant: Mr.T.Ravikumar
Senior Standing Counsel
For Respondent: Mr.Md.Shaffiq
COMMON JUDGMENT
(Delivered by T.S.Sivagnanam,J)
These appeals, filed by the Revenue, are directed against the order
dated 13.10.2017 made in ITA.No.1573/Mds/2014 for the assessment year
2007-08, ITA.No.1382/Mds/2013 for the assessment year 2008-09 and
ITA.No.1381/Mds/2013 for the assessment year 2006-07 on the file of the
Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai ('The Tribunal'
for brevity).
2. The appellant-Revenue in all these appeals has raised the
following substantial questions of law for consideration:
"1. Whether on the facts and in the
circumstances of the case, the Tribunal was right
in remitting the issue back to the file of AO in
respect of retention money withheld by the
customer with a direction to include only such
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TCA.Nos.103, 107 & 108 of 2021
part of the retention money which was actually
received by the Assessee during the relevant
assessment year without appreciating the fact that
the assessee has been following Mercantile system
of accounting and the same has already accrued
to the assessee and therefore liable to be taxed?
2. Whether the finding of the Tribunal is
proper by directing the AO to include the actual
sum that were received from the Customer on
retention money on receipt basis instead of
including the retention money withheld by the
customer on accrual basis and the said direction
of the Tribunal would amount to cash system as
well as mercantile system method to be followed
for a given assessment year which is not proper?"
3. We have heard Mr.T.Ravikumar, learned Senior Standing
Counsel for the appellant-Revenue and Mr.Mohamed Shaffiq, learned
counsel for the respondent.
4. The learned Senior Standing Counsel appearing for the
appellant submits that the above appeals are not pursued by the Revenue on
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TCA.Nos.103, 107 & 108 of 2021
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 appeals
are dismissed on account of the low tax effect. The substantial question of
law framed is 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 appeals to be heard and decided on
merits. No costs. Consequently, connected miscellaneous petitions are
closed.
(T.S.S.,J.) (R.N.M.,J.)
02.02.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
hvk
https://www.mhc.tn.gov.in/judis/
TCA.Nos.103, 107 & 108 of 2021
To
1. The Income Tax Appellate Tribunal,
Madras 'A' Bench,
Chennai.
2. The Commissioner of Income Tax,
Chennai.
https://www.mhc.tn.gov.in/judis/
TCA.Nos.103, 107 & 108 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
T.C.A.Nos.103, 107 & 108 of 2021
and
C.M.P.Nos.1786 & 1787 of 2021
02.02.2021
https://www.mhc.tn.gov.in/judis/
