The Commissioner Of Income Tax, Chennai v. M/S.farida Shoes P. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 27.08.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.851 of 2015 The Commissioner of Income Tax,Chennai....Appellant/AppellantVs M/s.Farida Shoes P. Ltd.,17, Jalal Road,Ambur - 635 802. ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 28.03.2014 made in ITA.No.191/Mds/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2009-10 against the Order dated 26.09.2013made in ITA No.490/2013-14 on the file of the Commissioner ofthe Income Tax (Appeals)-II, Chennai -34, for the AssessmentYear 2009-10 and against the Order dated 23.12.2011 made in ITNS65/PAN No.AAACF 0496 Q on the file of the Deputy Commissioner ofIncome Tax Company Circle-11 (1) Chennai -34, for theAssessment Year 2009-10. For Appellant: Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSCFor Respondent : Mr.A.S.Sriraman for Mr.S.Sridhar JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.Ravikumar, learned Senior StandingCounsel, and Ms.R.Hemalatha, learned Senior Standing Counselappearing for the appellant/revenue and Mr.A.S.Sriraman, learnedcounsel for Mr.S.Sridhar, learned counsel appearing for therespondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated28.03.2014 made in ITA.No.191/Mds/2014 on the file of the Income https://hcservices.ecourts.gov.in/hcservices/ Tax Appellate Tribunal, Chennai 'A' Bench for the assessmentyear 2009-10. 3.The appeal was admitted on 25.11.2015 on the followingsubstantial questions of law :“1) Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in deleting the disallowances made onaccount of commission paid to non-resident agenton the ground that the same has not accrued inIndia and Section 195 has no application? 2) Is not the finding of the Tribunal bad,since as per the Explanation inserted at the endof Section 9 by Finance Act, 2010 withretrospective from 01.06.1976 according to whichincome of the non-resident shall be deemed tohave accrued or arisen in India under clauses(v), (vi) or clause (vii) of sub-section (1) andis to be included in the total income of thenon-resident whether or not he is a resident orhas a place of business connection in India orhas rendered services in India?" 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.17/2019dated 08.8.2019 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 questions of law framed are 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. cse Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'A' Bench, Chennai.Chennai 'A' Bench, Chennai. 2.The Commissioner of the Income Tax (Appeals)-II, Chennai -34. 3. The Deputy Commissioner of Income Tax Company Circle-11 (1) Chennai -34. Kak(21/11/2019) TCA.No.851 of 2015