Tca/607/2014 Of Commissioner Of Income Tax v. Smt.ritha Sabapathy

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI Commissioner of Income Tax,Chennai. Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 07.05.2009 in ITA.No.1525/Mds/2009,Assessment Year 2002-03 against I.T.A. No. 361/2006-2007 orderdated 13.08.2008 on the file of the Commissioner of Income Tax(Appeals)V against GIR No./PAN Sa424(P)/ order dated18.11.2006 on the file of Income Tax Officer(OSD) Company CircleVI(1) Chennai 34. For Appellant : Ms.V.Pushpa, Standing Counsel for Mr.M.Swaminathan, Senior Standing Counsel We have heard Ms.V.Pushpa, learned Standing Counsel for theappellant – Revenue and Ms.Sriniranjani Srinivasan for therespondent – Assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 07.05.2009 made in ITA.No.1525/Mds/2009 on thefile of the Income Tax Appellate Tribunal, Chennai, ''B'' Bench(for brevity, the Tribunal) for the Assessment Year 2002-03. 3.The appeal was admitted on 15.09.2014 on the followingsubstantial questions of law: “1.Whether under the facts and the circumstancesof the case, the Income Tax Appellate Tribunalwas right in law in deleting the disallowance ofcommission amount of Rs.20 lakhs paid by assessee https://hcservices.ecourts.gov.in/hcservices/ to her husband and not hit by the provisions ofSection 40 A(2)(b)(1) o f the Income Tax Act?2)Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in law in deleting the disallowance ofcommission amount of Rs.20 lakhs paid by assesseeto her husband, though the expenditure has notbeen incurred wholly and exclusively for thepurpose of business? 4.The learned Standing Counsel for the appellant submitsthat the above appeal is not pursued by the Revenue on accountof the Low Tax Effect in terms of Circular No.17/2019 dated08.08.2019 issued by the Central Board of Direct Taxes. By thesaid 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 questions of law framed are left open. In the eventthe tax effect in this case is above the threshold limit fixedin the said Circular, liberty is granted to the Revenue to makea mention to this Court to restore the appeal to be heard anddecided on merits. No costs. vaTo 1.The Income Tax Appellate Tribunal, Chennai, ''B'' Bench 2.The Commissioner of Income Tax (Appeals)V121 Mahathma Gandhi Road, Chennai 34. +1 CC to Mr.N. Muthukumar, Advocate sr 1156.+1 CC to Mr.M.Swaminathan, Advocate sr 1428. https://hcservices.ecourts.gov.in/hcservices/