Commissioner Of Income Tax, Chennai v. Sri Shaik Mohamed Mohamed Rafeeq

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.147 of 2015 Commissioner of Income Tax,Chennai. ...AppellantVs Sri Shaik Mohamed Mohamed Rafeeq ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 19.08.2014 made in ITA.No.20/MDS/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2009-10 against the order dated 28.09.2012made in I.T.A. 237/2011-2012 on the file of the Commissioner ofIncome Tax (Appeals)IX, Chennai against the order dated29.12.2011 made in P.A. No. ALYPM1001C on the file of theAssistant Commissioner of Income Tax Business Circle VIII,Chennai for the Assessment year 2009-2010. For Appellant: Mr.M.Swaminathan, SSC and Mr.S.Rajesh, SC For Respondent: Not ready notice JUDGMENT We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Mr.S.Rajesh, learned Standing Counsel appearing forthe appellant/revenue. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated19.08.2014 made in ITA.No.20/MDS/2013 on the file of the IncomeTax Appellate Tribunal, Chennai 'B' Bench for the assessmentyear 2009-10. 3.The appeal was admitted on 07.04.2015 on the followingsubstantial question of law : https://hcservices.ecourts.gov.in/hcservices/ “Whether on the facts and in the circumstancesof the case, the Tribunal was right in holding thatSection 40(a)(ia) can be invoked only to theamounts of expenditure which are payable as on lastday of the financial year and not the expenditureincurred during the financial year?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial question of law framed is left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. s/d- Assistant Registrar(CS VIII) True Copy Sub-Assistant Registrar cse To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax (Appeals) IX, Chennai 3.The Assistant Commissioner of Income Tax Business Circle VIII, Chennai RSV(CO)SP(06/11/2019)