Commissioner Of Income Tax Chennai v. M/S.raj Television Network Ltd., 12B Poes Road, 3[Rd] Street,Teynamept, Chennai – 600 018

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 11.12.2018 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case No.715 of 2007 Commissioner of Income Tax Chennai. .... Appellant Vs. M/s.Raj Television Network Ltd., 12B Poes Road, 3[rd] Street,Teynamept, Chennai – 600 018. .... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai, dated 23.11.2006 made inITA No.664/Mds/2003 for the assessment year 1997-98 against theorder dated 21.01.2003 made in ITA 287/98-99/TDS by theCommissioner of Income Tax(A) XI, Chennai against the assessmentorder dated 21.10.1998 against the TAN No.R-2120/Chennai for theassessment year 1997-1998 by the Income Tax office, TDS VIII,Chennai. For Appellant : Mr.M.Swaminathan Sr.Standing Counsel For Respondent : Mr.Srinath Sridevan----- J U D G M E N T(Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, Madras 'B' Bench, Chennai, dated23.11.2006 made in ITA No.664/Mds/2003 for the assessment year1997-98 by raising the following substantial questions of law: "(i) Whether in the facts and circumstances ofthe case, the Tribunal was right in holding that thepayments made to Reuters Television Ltd. forproviding uplink facility for receiving signals fromthe transponders are in the nature of hire charges https://hcservices.ecourts.gov.in/hcservices/ and not fee for technical services as per Expl.2 toSection 9(1)(vii) r.w.section 194J?(ii) Whether in the facts and circumstances ofthe case, the Tribunal was right in deleting thelevy of tax and interest under section 201(1) and201(1A)? 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial questions of law for determination in an appropriatecase. Sd/- Assistant Registrar(CS VI) //True Copy// sl Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai. 2.The Commissioner of Income Tax(A) XI, Chennai. 3.The Income Tax Officer, TDS VIII, Chennai-34. Chennai-34. +2ccs to Mr.K.Harishankar, Advocate, S.R.No.85333 TC No.715 of 2007 GJII(CO)rrs 24/01/2019