Tca/148/2013 Of Commissioner Of Income Tax v. M/S Sun Engineering Constrctio

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.148 of 2013 Commissioner of Income Tax,Chennai. ... Appellant-vs- M/s.Sun Engineering Constructions,Plot No.28, 2[nd] Street Extension,Jai Nagar, Arumbakkam,Chennai-600 106. ... Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 11.10.2012, made in I.T.A.No.1328/Mds/2012 onthe file of the Income Tax Appellate Tribunal 'C' Bench, Chennaifor the assessment year 2008-09, against the order dated 15/03/2012 made in ITA No.78/10-11(A)-VIII passed by the Commissioner of Income Tax (A)-VIIIagainst the order dated 24/12/2010 passed by the AssistantCommissioner of Income Tax Circle V Chennai in PAN/GIRNo. . For Appellant:Mr.M.Swaminathan, Senior Standing Counsel This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated11.10.2012, made in I.T.A.No.1328/Mds/2012 on the file of theIncome Tax Appellate Tribunal 'C' Bench, Chennai for theassessment year 2008-09. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal has been filed raising the following substantialquestion of law:- “Whether on the facts and in the circumstancesof the case, the Appellate Tribunal was right indeleting the disallowance made u/s 40(a)(ia) inrespect of labour charges paid, without deductingTDS, on the ground that the assessee had alreadypaid the amounts and nothing remained payable andSec.40(a)(ia) is applicable only where the amountremains payable and not to amounts paid?” 3.Heard Mr.M.Swaminathan, learned Senior Standing Counselassisted by Ms.V.Pushpa, learned Standing Counsel for theappellant – and Mr.A.S.Sriraman, learned counsel forMr.S.Sridhar, learned Counsel 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 question of law framed is 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 tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal 'C' Bench, Chennai. 2.The Assistant Commissioner of Income Tax, Business Circle-V, Chennai-600 034. Business Circle-V, Chennai-600 034. 3.The Commissioner of Income Tax (Appeals-VIII), 2[nd] Floor, Main Building, 121, M.G.Road, Nungambakkam, Chennai-600 034. Nungambakkam, Chennai-600 034. +1cc to Mr.S.Sridhar, Advocate Sr.72493 +1cc to Mr.Swaminathan, Advocate Sr.73012 T.C.A.No.148 of 2013rgn[co]srg 31/01/2020