Commissioner Of Income Tax,Chennai v. Shri G.kuppuswamyno

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 18.03.2021CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVIT.C.A.No.436 of 2012 Commissioner of Income Tax,Chennai.... Appellant Vs. Shri G.KuppuswamyNo.34, Rathnasabapathy Street,Old Washermanpet,Chennai – 600 021. ... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “A” Bench, dated 17.05.2012 in I.TA.No.1599/Mds/2010,Assessment Year 2006-07 made against the order of thecommissioner of Income Tax(A)-XI Chennai dated 11.06.2010 in ITANo.191/2008-09, for the Assessment year 2006-07, against theorder of the Assessing officer - Assistant Commissioner ofIncome Tax Business Range VI, Chennai – 34 dated 31.12.2008, forthe Assessment year 2006-07. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For Respondent : No appearance JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 17.05.2012 made in I.TA.No.1599/Mds/2010 on thefile of the Income Tax Appellate Tribunal, Chennai, “A” Bench(for brevity, the Tribunal) for the Assessment Year 2006-07. 3.The appeal was admitted on 12.12.2012 on the followingsubstantial question of law:“Whether under the facts and circumstances of thecase, the Income Tax Appellate Tribunal was correct inholding that the disallowance under Section 40(a)(ia)would be applicable only with respect to the amounts https://hcservices.ecourts.gov.in/hcservices/ which remain payable as on the last date of theprevious year relevant to the assessment year,following the decision of the Special Bench in the caseofM/s.MerilynShipping&Transports(ITANo.477/viz/2008), which has not attained finality?” 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 08.08.2019 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 as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar (CS VII) /TRUE COPY/ Sub-Assistant Registrar To1.The Income Tax Appellate Tribunal, Chennai, “A” Bench 2.The Commissioner of Income Tax(A)-XI, Chennai. 3.The Assistant Commissioner of Income Tax Business Range VI,Chennai – 34. T.C.A.No.436 of 2012 AK-II(CO)KKN 30.04.2021