Commissioner Of Income Tax-I,Tiruchirapalli v. Https://Hcservices.ecourts.gov.in/Hcservices

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 28.1.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case Appeal No.503 of 2011 Commissioner of Income Tax-I,Tiruchirapalli ...Appellant Vs Smt.U.Srilakshmi ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 30.5.2011 in ITA No.15/Mds/2010 on thefile of the Income Tax Appellate Tribunal Chennai 'A' Bench forthe assessment year 2006-07 against the order of theCommissioner of Income Tax (Appeals), Tiruchirapalli,dated29.11.2009 made in ITA No.247/08-09 against the order passed bythe Deputy Commissioner of Income Tax, Company Circle II, Trichydated 26.12.2008 made in PA.No/GIR No.AAFPU4705R. For Appellant : Ms.V.Pushpa, JSCFor Respondent :Mr.A.S.SriramanJudgment was delivered by T.S.SIVAGNANAM,J Heard the learned Junior Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 03.1.2012 onthe following substantial question of law :“Whether,onthefactsandcircumstances of the case, the Income TaxAppellate Tribunal was right in deleting theaddition under Section 40A(3) of the IncomeTax Act on the ground that no single paymentexceeded the prescribed limit of Rs.20,000/-even though the Assessing Officer hadestablished that the payment to the same https://hcservices.ecourts.gov.in/hcservices/ person had been split artificially and shownin the names of fictitious persons ?” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial question of law framed is leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To1.The Income Tax Appellate Tribunal, Madras 'A' Bench.2.The Commissioner of Income Tax-I, Tiruchirapalli3.The Commissioner of Income Tax(Appeals), Tiruchirapalli4.The Deputy Commissioner of Income Tax, Company Circle-II, Tiruchirapalli +1cc to M/s. V.Pushpa, Advocate, S.R.No.6360+1cc to Mr.M.Swaminathan, Advocate, S.R.No.6610+1cc to Mr.S.Sridhar, Advocate, S.R.No.6891 pm(CO)kak(07/03/2019) TCA.No.503 of 2011