Commissioner Of Income Tax,Trichy v. M/S.safeway Dredging Enterprise

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 28.08.2019 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.119 of 2018 Commissioner of Income Tax,Trichy....Appellant/ Appellant Vs M/s.Safeway Dredging Enterprise,No.7, Sattaiappar East Street,Nagapattinam - 611 011.PAN: ...Respondent/ Respondent APPEAL under Section 260A of the Income Tax Act, 1961againsttheorderdated15.07.2016madeinITA.No.1447/MDS/2016 on the file of the Income TaxAppellate Tribunal, Chennai 'D' Bench for the assessmentyear 2010-11 against the order of the Commissioner ofIncome Tax Appeals, Tiruchirapalli dated 30.01.2014 made inITA.NO.149/2013-2014/CIT (A)TRY for the Assessment Year2010-2011 Against the order of the Deputy Commissioner of IncomeTax Circle I,Thanjavur dated 28.03.2013 made in PAN/GIRNO.ABHFS8145AFor Appellant: Mr.M.Swaminathan, SSC and Ms.V.Pushpa, SCFor Respondent : Mr.R.Sivaraman JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.M.Swaminathan, learned Senior StandingCounsel, and Ms.V.Pushpa, learned Standing Counselappearing for the appellant/revenue and Mr.R.Sivaraman,learned counsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A https://hcservices.ecourts.gov.in/hcservices/ of the Income Tax Act, 1961 is directed against the orderdated 15.07.2016 made in ITA.No.1447/MDS/2016 on the fileof the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2010-11. 3.This appeal has been filed by raising the followingsubstantial question of law :“Whether on the facts and in thecircumstances of the case, the Tribunal wasright in holding that Section 40a(ia) canbe invoked only to the amounts ofexpenditure which are payable as on lastday of the financial year and not theexpenditure paid during the financialyear?" 4.The learned Senior Standing Counsel for theappellant submits that the above appeal is not pursued bythe Revenue on account of the low tax effect in terms ofCircular No.17/2019 dated 08.8.2019 issued by the CentralBoard of Direct Taxes. By the said Circular, the monetarylimit for filing or pursuing an appeal before the HighCourt has been increased to Rs.1 Crore. It is furthersubmitted that the tax effect in this case is less than thethreshold limit. 5.In the light of the said submissions, the above taxcase appeal is dismissed on account of the low tax effect.The substantial question of law framed is left open. In theevent the tax effect is above the threshold limit fixed inthe said circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeal to beheard and decided on merits. No costs. Sd/- Assistant Registrar(CS) //True Copy// 1.THE INCOME TAX APPELLATE TRIBUNAL, CHENNAI 'D' BENCH. 2.THE COMMISSIONER OF INCOME TAX APPEALS, TIRUCHIRAPALLI 3.THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE I,THANJAVUR+1CC TO MR.M.SWAMINATHAN , ADVOCATE SR.NO. 74898TCA.No.119 of 2018A.SK(13/11/2019) 2.THE COMMISSIONER OF INCOME TAX APPEALS, TIRUCHIRAPALLI 3.THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE I,THANJAVUR+1CC TO MR.M.SWAMINATHAN , ADVOCATE SR.NO. 74898TCA.No.119 of 2018A.SK(13/11/2019) https://hcservices.ecourts.gov.in/hcservices/