Madras High Court
The Principal Commissioner Of ... vs M/S.Khazana Jewellery Private ... on 2 February, 2021
TCA.Nos.100, 104 & 109 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.100, 104 & 109 of 2021
and
C.M.P.Nos.1783 & 1790 of 2021
The Principal Commissioner of Income Tax,
TDS Circle I,
Chennai. ...Appellant in all cases
Vs
M/s.Khazana Jewellery Private Limited,
No.252-A, T.T.K.Road,
Alwarpet, Chennai - 600 018.
PAN: AAACK2564Q ...Respondent in all cases
COMMON PRAYER: Appeals under Section 260A of the Income Tax Act,
1961 against the order dated 13.10.2017 made in ITA.No.1831/Mds/2014
for the assessment year 2011-12, ITA.No.1829/Mds/2014 for the
assessment year 2009-10 and ITA.No.1830/Mds/2014 for the assessment
year 2010-11 on the file of the Income Tax Appellate Tribunal, Madras 'B'
Bench.
https://www.mhc.tn.gov.in/judis/
TCA.Nos.100, 104 & 109 of 2021
(in all cases)
For Appellant: Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent: Mr.A.S.Sriraman
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.1831/Mds/2014 for the assessment year
2011-12, ITA.No.1829/Mds/2014 for the assessment year 2009-10 and
ITA.No.1830/Mds/2014 for the assessment year 2010-11 on the file of the
Income Tax Appellate Tribunal, Madras 'B' Bench ('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 circumstances
of the case and in law, the Tribunal was right in
holding that the financial benefit provided to
customers on the gold promotional scheme
shouldn't be treated as "interest" u/s 2(28A) and
https://www.mhc.tn.gov.in/judis/
TCA.Nos.100, 104 & 109 of 2021
isn't liable to TDS u/s 194A of the Income Tax
Act, 1961?
2. Whether on the facts and circumstances of
the case and in law, the Tribunal was right in
holding that the banking charges paid by the
assessee company to banks for facilitating credit
and debit card payments are not liable to TDS u/s
194J of the Income Tax Act, 1961 for the AY's
2009-10 to 2013-14?
3. Whether on the facts and circumstances of
the case and in law, the Tribunal was right in
holding that the services provided by the bank in
this regard are not any managerial, technical or
consulting services to the assessee?"
3. We have heard Mr.Karthik Ranganathan, learned Senior
Standing Counsel for the appellant-Revenue and Mr.A.S.Sriraman, 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
account of the low tax effect in terms of Circular No.17/2019 dated
https://www.mhc.tn.gov.in/judis/
TCA.Nos.100, 104 & 109 of 2021
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.100, 104 & 109 of 2021
To
1. The Income Tax Appellate Tribunal,
Madras 'B' Bench.
2. The Principal Commissioner of Income Tax,
TDS Circle I,
Chennai.
https://www.mhc.tn.gov.in/judis/
TCA.Nos.100, 104 & 109 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
T.C.A.Nos.100, 104 & 109 of 2021
and
C.M.P.Nos.1783 & 1790 of 2021
02.02.2021
https://www.mhc.tn.gov.in/judis/
