Madras High Court
Commissioner Of Income Tax vs M/S.Mgm Transport Pvt. Ltd on 2 March, 2021
T.C.A.Nos.154 to 156 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 02.03.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.Nos.154 to 156 of 2014
Commissioner of Income Tax,
Chennai. ... Appellant in all TCAs
Vs.
M/s.MGM Transport Pvt. Ltd.,
189, Waltax Road,
Chennai – 600 003. ... Respondent in all TCAs
Appeals preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
"B" Bench, dated 25.02.2013 in I.TA.Nos.1282, 1283 & 567/Mds/2011
Assessment Year 2005-06, 2008-09 & 2007-08
For Appellant : Mr.Karthick Ranganathan,
(in all TCAs) Senior Standing Counsel
For Respondent : Mr.R.Janakiraman
(in all TCAs)
COMMON JUDGMENT
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T.C.A.Nos.154 to 156 of 2014
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthick Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.R.Janakiraman, learned
counsel for the respondent/assessee.
2.The appeals, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 25.02.2013 made in I.TA.Nos.1282, 1283 & 567/Mds/2011 on the
file of the Income Tax Appellate Tribunal, Chennai, "B" Bench (for
brevity, the Tribunal) for the Assessment Year 2005-06, 2008-09 &
2007-08.
3.The appeals were admitted on 06.08.2014 on the following
substantial questions of law:
“1)Whether under the facts and circumstances
of the case, the Income Tax Appellate Tribunal was
right in holding that the assessee was liable to deduct
tax at source on the hire charges payments to sister
concern as per netting formula quo payments made in
furtherance to cross hiring engagement of vehicles
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T.C.A.Nos.154 to 156 of 2014
with its sister concern for the purpose of application
of Section 40(a)(ia)?
2)Whether on the facts and circumstances of
the case, the Income Tax Appellate Tribunal was
correct in deciding that the shortfall in tax deduction
at source does not attract disallowance under Section
40 (a)(ia)?
3)Whether on the facts and circumstances of
the case, the Income Tax Appellate Tribunal was
right in holding that the provisions of Section
40(a)(ia) will not apply to belated payments of tax
deduction at source made before the due date for
filing of return of income?”
4.The learned Senior Standing Counsel 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 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 these
cases are less than the threshold limit.
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T.C.A.Nos.154 to 156 of 2014
5.In the light of the said submissions, the above Tax Case Appeals
are dismissed as withdrawn 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 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 appeals to be heard and decided on merits. No costs.
Index : Yes/No [M.D., J.] [T.V.T.S., J.]
Internet : Yes 02.03.2021
va
To
The Income Tax Appellate Tribunal, Chennai, "B" Bench
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T.C.A.Nos.154 to 156 of 2014
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
va
T.C.A.Nos.154 to 156 of 2014
02.03.2021
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