Principal Commissioner Of Income Tax Central 2 v. M/S.mother Mira Industries Limited

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.243 of 2017 Principal Commissioner of Income Tax Central 2,No.108, Mahatma Gandhi Road,Chennai-600 034. .. Appellant/Respondent -vs- M/s.Mother Mira Industries Limited,C/o.M/s.Subbaraya Aiyar Padmanabhan & Ramamani, Advocates,New No.75, Old No.105A,Dr.Radhakrishnan Salai,Mylapore, Chennai-600 004.PAN: AAC CM 2392 L.. Respondent/AppellantAppeal under Section 260A of the Income-tax Act, 1961,againsttheorderdated28.10.2016,madeinI.T.A.No.2135/Mds/2013 on the file of the Income Tax AppellateTribunal 'D' Bench, Chennai for the assessment year 2009-10against the Appellant order of the Commissioner of Income Tax(Appeals)-IIChennai dated24.10.2013andmade inITA.No.531/2013-14 for the Assessment year 2009-10; and against the Assessment order of the Assistant Commissionerof Income TAx, Central Circle II(2), Chennai-600 034 dated30.12.2011 and made in PAN/G.I.No. for the Assessmentyear 2009-10. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counselassisted by Ms.K.G.Usharani,Standing Counsel For Respondent :Mr. Mr.R.Venkatanarayana, For M/s.Subbaraya Aiyar Padmanabhan & Ramamani 1/3 https://hcservices.ecourts.gov.in/hcservices/ JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated28.10.2016, made in I.T.A.No.2135/Mds/2013 on the file of theIncome Tax Appellate Tribunal 'D' Bench, Chennai for theassessment year 2009-10. 2.The appeal has been filed raising the following substantialquestions of law:- “(i) Whether, on the facts and in thecircumstances of the case, the ITAT is correct inlaw in holding that if the rental receipt had beensubjected to tax in the hands of recipient, therecannot be any disallowance in the hands of theassessee under Section 40(a)(ia) of Income TaxAct, towards non deduction of tax at source on therental receipt? and (ii) Whether, on the facts and in thecircumstances of the case, the ITAT is correct inlaw in relying on 2[nd] proviso to Sub Clause (ia) ofClause (a) of Section 40, even though the same wasintroduced by the Finance Act, 2012 prospectivelywith effect from 01.04.2013 and as such notapplicable for the assessment year 2009-10?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Mr.R.Venkatanarayana, learned counsel, forM/s.Subbaraya Aiyar, Padmanabhan & Ramamani, for the respondent. 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.17/2019,dated 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 on account of the low tax effect. Thesubstantial questions of law framed are 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 to 2/3 https://hcservices.ecourts.gov.in/hcservices/ this Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Asst.Registrar (CS III ) /true copy/Sub Asst. Registrar 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are 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 to 2/3 https://hcservices.ecourts.gov.in/hcservices/ this Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Asst.Registrar (CS III ) /true copy/Sub Asst. Registrar To1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2.THe Principal Commissioner of Income Tax Central 2Chennai-600 0343.The Commissioner of Income Tax (Appeals)-IIChennai4.The Assistant Commissioner of Income TaxeCentral Circle II(2)Chennai-600 034+1 cc to Mr.T.R.Senthil Kumar Advocate sr75132+1 cc to Mr.Subbaraya Aiyar Advocate sr75142T.C.A.No.243 of 2017aa11/11/2019 3/3