Commissioner Of Income Tax vs M/S.Trio Shipping Services ...
2021 Latest Caselaw 1000 Mad

                                                                                TCA.No.566 of 2019


                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                      DATED: 18.01.2021

                                                          CORAM :

                                      The Honourable Mr.Justice T.S.SIVAGNANAM
                                                          and
                                        The Honourable Ms.Justice R.N.MANJULA

                                             Tax Case Appeal No.566 of 2019

                     Commissioner of Income Tax,
                     Corporate Circle 3,
                     Chennai.                                                  ...Appellant

                                                             Vs

                     M/s.Trio Shipping Services Private Limited,
                     No.34, Gopal Street,
                     T.Nagar, Chennai - 600 017.
                     PAN: AABCT2299N                                           ...Respondent


                             APPEAL under Section 260A of the Income Tax Act, 1961 against the
                     order dated 22.03.2019 made in ITA.No.1779/Chny/2018 on the file of the
                     Income Tax Appellate Tribunal, 'C' Bench, Chennai for the assessment year
                     2011-12.
                                     For Appellant:    M/s.V.Pushpa
                                                       Standing Counsel

                                     For Respondent: M/s.Harshni Jyothiraman



                     1/4



https://www.mhc.tn.gov.in/judis/
                                                                                     TCA.No.566 of 2019


                                                     JUDGMENT

(Delivered by T.S.Sivagnanam,J)

This appeal, filed by the Revenue under Section 260A of the Income

Tax Act, 1961 (for short, the Act) is directed against the order 22.03.2019

made in ITA.No.1779/Chny/2018 on the file of the Income Tax Appellate

Tribunal, 'C' Bench, Chennai (for brevity, the Tribunal) for the assessment

year 2011-12.

2. The appellant was admitted on 08.08.2019 on the following

substantial questions of law for consideration:

“i.Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in deleting the addition made under Section 37(1) by holding that the commission payments were not doubted by the Lower Authorities, when the same was doubted by both the Assessing Officer and the Commissioner of Income Tax (Appeals)?

ii.Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in deleting the

https://www.mhc.tn.gov.in/judis/ TCA.No.566 of 2019

commission payment made by the assessee to the tune of Rs.1,60,50,000/- under Section 37(1) when the assessee could not produce any evidence for the justification of the payment?”

3. We have heard M/s.V.Pushpa, learned Standing Counsel for the

Appellant – Revenue and M/s.Harshni Jyothiraman, learned counsel

appearing for the respondent.

4. The learned Senior Standing Counsel appearing 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.

https://www.mhc.tn.gov.in/judis/ TCA.No.566 of 2019

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

cse

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

framed 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.

                                                                        (T.S.S.,J.)    (R.N.M.,J.)
                                                                               18.01.2021
                     Index: Yes/No
                     Internet:Yes/No

Speaking Judgment/Non speaking Judgment cse

To

The Income Tax Appellate Tribunal, 'C' Bench, Chennai.

TCA.No.566 of 2019

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