Madras High Court
The Principal Commissioner Of vs M/S.Hidesign India Pvt. Ltd on 7 January, 2021
TCA.No.28 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.1.2021
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MS.JUSTICE R.N.MANJULA
Tax Case Appeal No.28 of 2021
The Principal Commissioner of
Income Tax, Corporate Circle 2(2),
Chennai-34 ...Appellant
Vs
M/s.Hidesign India Pvt. Ltd.,
Chennai-20 ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against
the order dated 31.1.2018 passed by the Income Tax Appellate
Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.2496/Mds/2017
for the assessment year 2013-14.
For Appellant: Mr.Karthik Ranganathan, SC
assisted by Mr.S.Rajesh, JSC
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
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TCA.No.28 of 2021
dated 31.1.2018 made in I.T.A.No.2496/Mds/2017 on the file of the
Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for
brevity) for the assessment year 2013-14.
2. The Revenue has filed this appeal by raising the following
substantial questions of law:
“1. Whether, on the facts and
circumstances of the case and in law, the
Tribunal was correct and justified in holding
that the assessee's belated remittance of PF &
ESI as per relevant Act, but before the due
date of filing of IT return in accordance with
the IT Act, which is in contravention of
provisions of Section 36(1)(va) of the IT Act ?
2. Whether, on the facts and
circumstances of the case and in law, the
Tribunal was correct in applying the decision of
M/s.Industrial Security & Intelligence India
Private Limited without considering circular No.
22/2015 dated 17.12.2015 which clearly states
that only the remittance of employer's
contribution to PF/ESI by the assessee as an
employer on or before the due date of filing
the return of income under Section 139(1) of
the Act would be allowable as per provisions
under Section 43B of the Act, further it
clarified that it is not applicable to cases which
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TCA.No.28 of 2021
are governed by Section 36(1)(va) of the Act ?
3. Whether, on the facts and
circumstances of the case and in law, the
Tribunal was correct in deleting the addition
made under Section 14A of the Act by holding
that there cannot be any disallowance under
Section 14A when there is no exempted
income, when the provisions of the said
Section as well as Rule 8D does not provide for
any such exception ? And
4. Whether, on the facts and in the
circumstances of the case and in law, the
Tribinal was correct in not appreciating the
CBDT circular No.5/2014 wherein it is clarified
that disallowance under Section 14A read with
Rule 8D has to be made even if the taxpayer in
a particular year not earned any exempt
income?”
3. We have heard Mr.Karthik Ranganathan, learned Standing
Counsel assisted by Mr.S.Rajesh, learned Junior Standing Counsel
appearing for the appellant/Revenue.
4. The learned 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
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TCA.No.28 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
RS
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.
07.1.2021
To
The Income Tax Appellate Tribunal, 'A' Bench, Chennai.
TCA.No.28 of 2021
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