Tax Case (Appeal) v. M/S.s.s. Engineers & Builders

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 7.2.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Tax Case (Appeal) No.149 of 2013 The Commissioner of Income Tax Chennai: Appellant/Appellant Vs. M/s.S.S. Engineers & Builders, No.25/12, 19th Street, Jai Nagar, Arumbakkam, Chennai 600 106. : Respondent/ Respondent Tax Case filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal, 'C'Bench, Chennai, dated 24.9.2012 made in ITA No.1329/Mds/2012,against the order of the Commissioner of Income Tax (AppealsVIII), Chennai-34 made in ITA No.77/10-11(A) VIII dated15.03.2012 for the Assessment year 2008-09 and against the orderof the Assistant Commissioner of Income Tax, Circle-V, Chennai-34 made in ABKFS0845G, dated 24.12.2010 for the Assessment year2008-09. For Appellant : Mr.J.Narayanasamy Senior Standing Counsel For Respondent : Mr.A.S.Sriraman This Tax Case has been filed by the Revenue, calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'C' Bench, Chennai, dated 24.9.2012 made inITA No.1329/Mds/2012, for the Assessment Year 2008-2009, byraising the following substantial question of law: "Whether on the facts and in the circumstances ofthe case, the Appellate Tribunal was right indeleting the disallowance made u/s. 40(a)(ia) inrespect of Labour Charges paid, without deducting https://hcservices.ecourts.gov.in/hcservices/ TDS, on the ground that the assessee had alreadypaid the amounts and nothing remained payable andSection 40(a)(ia) is applicable only where theamount remains payable, and not to amounts paid?" 2. When the matter is taken up for hearing, learned SeniorStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.17/2019 dated 8th August 2019, wherein, it is stipulated thatappeals shall not be filed/pursued by the Department before theHigh Court in cases where the tax effect does not exceedRs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed, as withdrawn, keeping open thesubstantial question of law for determination in appropriatecases. No costs. Sd/-Assistant Registrar// True Copy// ssk. Sub Assistant Registrar To 1. The Commissioner of Income Tax Chennai 2. Income Tax Appellate Tribunal, 'C' Bench, Chennai. 3. The Commissioner of Income Tax,Appeals (VIII), Chennai-600 034. 4. The Assistant Commissioner of Income Tax Circle V,Chennai-34. +1cc to Mr.S.Sridhar, Advocate, SR.No.9744. SR(CO)CSR: 17.03.2020 TC(A) No.149 of 2013