The Principal Commissioner Of vs M/S.Apollo Hospitals ...
2021 Latest Caselaw 6251 Mad

                                                                             TCA.No.763 of 2019



                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 09.3.2021

                                                        CORAM

                                  THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM

                                                         and

                                   THE HONOURABLE MS.JUSTICE R.N.MANJULA

                                         Tax Case Appeal No.763 of 2019


                      The Principal Commissioner of
                      Income Tax, Central-I, Chennai                           ...Appellant

                                                          Vs
                      M/s.Apollo Hospitals Enterprises
                      Pvt. Ltd., Chennai-6.                                    ...Respondent

APPEAL under Section 260A of the Income Tax Act, 1961

against the order dated 02.4.2019 passed by the Income Tax

Appellate Tribunal, Madras 'A' Bench, Chennai made in

I.T.A.No.3467/Chny/2018 for the assessment year 2012-13.

For Appellant : Mr.T.R.Senthilkumar, SSC assisted by Mrs.K.G.Usharani, 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

http://www.judis.nic.in TCA.No.763 of 2019

order dated 02.4.2019 made in I.T.A.No.3467/Chny/2018 on the file

of the Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the

Tribunal' for brevity) for the assessment year 2012-13.

2. The Revenue has filed this appeal by raising the following

substantial questions of law:

“1. Whether the Tribunal was correct in not appreciating the fact that the sum of employee's contribution to PF and ESI were credited by the assessee to employee's account beyond the 'due date' as mentioned in Explanation to Section 36(1)(va) of the Income Tax Act, 1961 ? and

2. Whether the Tribunal is right in not following the decisions of the High Court of Gujarat in the case of CIT Vs. Gujarat State Road Transport Corporation [366 ITR 170] and the High Court of Kerala in the case of CIT Vs. Merchem Ltd. [378 ITR 443] wherein it is held that employees contribution should be paid on or before the due date as prescribed under the relevant statute ?”

3. We have heard Mr.T.R.Senthilkumar, learned Senior Standing

Counsel assisted by Mrs.K.G.Usharani, Junior Standing Counsel

appearing for the appellant/Revenue.

http://www.judis.nic.in TCA.No.763 of 2019

4. The learned Senior 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 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.

09.3.2021 To The Income Tax Appellate Tribunal, 'A' Bench, Chennai.

RS

http://www.judis.nic.in TCA.No.763 of 2019

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

RS

TCA.No.763 of 2019

09.3.2021

http://www.judis.nic.in