Tca/484/2018 Of Commissioner Of Income Tax v. Winner Dairy & P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 17.06.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.484 of 2018 Commissioner of Income Tax,Chennai. ... Appellant-vs- M/s.Winner Dairy & (P) Ltd.,Shri S.Elambharathi & Others,New No.364 (Old No.210),Lloyds Road, Flat No.5, Ground Floor, “Kurupam Court”,Gopalapuram, Chennai-600 034.PAN : AAACW 0573 F... Respondent Appeal under Section 260A of the Income Tax Act, 1961against the order dated 28.10.2016 on the file of the Income TaxAppellate Tribunal 'A' Bench, Chennai, in I.T.A.No.2027/Mds/2016for the assessment year 2012-13. against the order of the Commissioner of Income Tax(Appeals), Puducherry in ITA No. 018/CIT(A)-PDY/2015-16 dated31/03/2016 for the Assessment Year 2012-13 against the orderdated 31.03.2015 in PAN passed by the Deputycommissioner of Income Tax, Pondicherry Circle, Pondicherry. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing CounselAssisted by Ms.K.G.Usha Rani JUDGMENT This appeal has been filed by the Revenue under Section260A of the Income-tax Act, 1961, challenging the order dated28.10.2016 passed by the Income-tax Appellate Tribunal 'A'Bench,Chennai(forbrevity“theTribunal”),inI.T.A.No.2027/Mds/2016 for the assessment year 2012-13. https://hcservices.ecourts.gov.in/hcservices/ questions of law for consideration:-“(i) Whether on the facts and in thecircumstances of the case the order of theTribunal erroneous in law and perverse on facts.(ii) Whether on the facts and in thecircumstances of the case the Tribunal was rightin holding that the provisions of Section 194Cdoes not apply to the assessee even though theassessee had made payment to the contractors forhiring the vehicle for procurement and sale ofmilk on the ground that the payments were made tothe owner of the vehicle and the provisions ofSection 194C is applicable only to thesubcontractors. (iii) Whether on the facts and in thecircumstances of the case the Tribunal was rightin holding that the assessing officer had nottaken steps to examine the details of the bankaccount etc., furnished by the assessee eventhough the assessee had not discharged its burdenof proof by providing the complete details of thepayee by providing the address, PAN number of theassessee etc., warranting disallowance of theexpenditure of such hire charges” 3.Heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel for the Revenue. 4.The learned Senior Standing Counsel for the Revenuesubmits that the appeal is not being pursued by the Revenue onaccount of low tax effect in the light of the Circular No.3 of2018, dated 11.07.2018. 5.Thus, by applying the above Circular, this tax caseappeal stands dismissed on the ground of low tax effect and thesubstantial questions of law, framed for consideration, are leftopen. The Revenue is at liberty to seek for restoration ofappeal if at a later point of time, it is found that the taxeffect is above the threshold limit or to fall under theexceptional clauses mentioned in the Circular. No costs. Sd/-Assistant Registrar (Insp Cell) //True Copy// abr Sub Assistant Registrar https://hcservices.ecourts.gov.in/hcservices/ To 1.The Deputy Commissioner of Income Tax, Pondicherry Circle, Pondicherry. Pondicherry Circle, Pondicherry. 2.The Commissioner of Income-Tax (Appeals)-Puducherry, 121, Mahatma Gandhi Road, Chennai-600 034. 121, Mahatma Gandhi Road, Chennai-600 034. 3.The Income Tax Appellate Tribunal 'A' Bench, Chennai. +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No. 50061 T.C.A.No.484 of 2018 SS(CO)GN(23/07/2019)