Tax Case Appeal v. M/S.theekathir Press Of Cpi(M), Madurai-18

In the High Court of Judicature at Madras Dated : 02.1.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.8 of 2016The Commissioner of Income Tax, Madurai...Appellant VsM/s.Theekathir Press of CPI(M),Madurai-18....Respondent M/s.Theekathir Press of CPI(M),Madurai-18....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 29.5.2015 in ITA No.2727/Mds/2014 on the file of the Income Tax Appellate Tribunal Madras 'C' Bench for the assessment year 2010-11. For Appellant : Ms.V.Pushpa and Ms.S.Premalatha, JSCFor Respondent :Mr.Uttam Cheriyan Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed by the Income Tax Appellate Tribunal, which decided the issue in favour of the assessee. The appeal was admitted on 19.1.2016 on the following substantial question of law : http://www.judis.nic.in “Whether, on the facts and in the circumstances of the case, the Tribunal was right AND N.SATHISH KUMAR,J RS in law in holding that the provisions of Section 40(a)(ia) of the Income Tax Act are applicable only to the amounts of expenditure, which are payable as on 31[st] March of the relevant previous year and it cannot be invoked to disallow expenditure, which had been actually paid during the previous year, without deduction of tax at source ?” 3. The Revenue seeks to withdraw this appeal on account of low tax effect in terms of Circular No.3 of 2018 dated 11.7.2018 issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed as withdrawn and the substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular under exceptional clauses mentioned in the circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs. Internet : Yes To The Income Tax Appellate Tribunal, Madras 'C' Bench. TCA.No.8 of 2016