Tca/574/2015 Of The Commissioner Of Income Tax v. M/S Good Leather Shoes P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax,Chennai. ... Appellant in both TCAs M/s. Good Leather Shoes (P) Ltd.,47, Thiruvengadam Street,Periamet, Chennai - 600 003. ... Respondent in both TCAs T.C.A. No. 574/2015 :Appeal preferred under Section 260A ofthe Income Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras, “A” Bench, dated 28.03.2014 inITA.No.188/Mds/2014 and ITA.No.288/Mds/2014 for the AssessmentYear 2009-10 and 2011-12 as against the order dated 17.09.2013passed by the Commissioner of Income Tax(Appeal-II) Chennai inITANos. 498 and 1567 /2013-2014 and as against the order datedby the Deputy Commissioner of Income tax, Chennai in PAN /GIRNumber dated 06.12.2012 for the Assessment Year2010-11 and Assistant Commissioner of Income tax,Company CircleII(2) Room No. 512,V floor,New Block,Chennai-34 in PAN /GIR No. dated 23.12.2011 for the Assessment Year 2009-10. For Appellant in : Mr.S. Rajesh both Petitioners for Mr.Karthik Ranganathan Standing Counsel For Respondent both Petitioners : Mr. G.Baskar COMMON JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.S. Rajesh, learned Standing Counsel forthe appellant/Revenue and Mr. G.Baskar, learned counsel for therespondent. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainst the order dated 28.03.2014 made respectively in ITA.Nos.188/Mds/2014 & 288/Mds/2014 on the file of the Income TaxAppellate Tribunal, Chennai, ''A'' Bench (for brevity, theTribunal) for the Assessment Years 2009-10 and 2010-11. 3. The appeals were admitted on 24.07.2015 on the followingsubstantial questions of law: “(i) Whether on the facts and in thecircumstances of the case, the Income TaxTribunal was right in deleting the disallowanceof commission payment made to non-resident underSection 40(a)(i) read with section 195 of theIncome Tax Act? (ii) Is not the findings of the Tribunal badespecially when the payment made to non-residentabroad is the commissions for the servicesrendered under section 9(1)(vii) as it had deemedto have been arisen in India? (iii) Whether on the facts and circumstancesof the case, the Income Tax Appellate Tribunalwas right in not considering the explanationinserted by Finance Act, 2010 with retrospectiveeffect from 01.06.1976 wherein the commissionpayments are taxable in India irrespective of thePE of the non- resident and also the place inwhich the services were rendered?” 4. The learned Standing Counsel appearing for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the Low Tax Effect in terms of Circular No.17/2019dated 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 respective casesis less than the threshold limit. 5. In the light of the said submissions, the above Tax CaseAppeals are dismissed on account of the Low Tax Effect. Thesubstantial questions of law framed is left open. In the eventthe tax effect in the respective cases is above the threshold https://hcservices.ecourts.gov.in/hcservices/ limit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Consequently, theconnected Miscellaneous Petitions are closed. Sd/- Asst.Registrar (CS IV ) /true copy/Sub Asst. Registrar Rj To 1. Income Tax Appellate Tribunal, Chennai, ''A'' Bench.2. The Deputy Commissioner Of Income Tax Company Circle-II(20,room No. 512,v floor,New Block Aayakar Bhavan,121 Uttamar Gandhi Salai,Chennai-34.3. The Commissioner of Income Tax,Chennai. https://hcservices.ecourts.gov.in/hcservices/ limit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Consequently, theconnected Miscellaneous Petitions are closed. Sd/- Asst.Registrar (CS IV ) /true copy/Sub Asst. Registrar Rj To 1. Income Tax Appellate Tribunal, Chennai, ''A'' Bench.2. The Deputy Commissioner Of Income Tax Company Circle-II(20,room No. 512,v floor,New Block Aayakar Bhavan,121 Uttamar Gandhi Salai,Chennai-34.3. The Commissioner of Income Tax,Chennai. 4. The Assistant Commissioner of Income Company Circle-II(20, Chennai-34. Circle-II(20, Chennai-34. +1cc to Mr. G.Baskar,Advocate 2893. T.C.A.Nos.574 & 575 of 2015 andM.P. No. 1 of 2015 ( 2 Mps) SVI(CO)NRA(03/03/2021).