Madras High Court
Commissioner Of Income Tax vs Ritha Sabapathy on 8 January, 2021
T.C.A.No.607 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 08.01.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.607 of 2014
Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
Ritha Sabapathy ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“B” Bench, dated 07.05.2009 in ITA.No.1525/Mds/2009, Assessment
Year 2002-03.
For Appellant : Ms.V.Pushpa, Standing Counsel
for Mr.M.Swaminathan,
Senior Standing Counsel
For Respondent : Ms.Sriniranjani Srinivasan
for Mr.G.Baskar
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T.C.A.No.607 of 2014
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Ms.V.Pushpa, learned Standing Counsel for the
appellant – Revenue and Ms.Sriniranjani Srinivasan 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 07.05.2009 made in ITA.No.1525/Mds/2009 on the file of the
Income Tax Appellate Tribunal, Chennai, ''B'' Bench (for brevity, the
Tribunal) for the Assessment Year 2002-03.
3.The appeal was admitted on 15.09.2014 on the following
substantial questions of law:
“1.Whether under the facts and the circumstances of
the case, the Income Tax Appellate Tribunal was
right in law in deleting the disallowance of
commission amount of Rs.20 lakhs paid by assessee
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T.C.A.No.607 of 2014
to her husband and not hit by the provisions of
Section 40 A(2)(b)(1) o f the Income Tax Act?
2)Whether under the facts and circumstances of the
case, the Income Tax Appellate Tribunal was right in
law in deleting the disallowance of commission
amount of Rs.20 lakhs paid by assessee to her
husband, though the expenditure has not been
incurred wholly and exclusively for the purpose of
business?
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 08.08.2019 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 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 in this case is
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T.C.A.No.607 of 2014
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.]
08.01.2021
Index : Yes/No
Internet : Yes
va
To
The Income Tax Appellate Tribunal, Chennai, ''B'' Bench
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T.C.A.No.607 of 2014
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
va
T.C.A.No.607 of 2014
08.01.2021
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