The Commissioner Of Income Tax, Coimbatore v. M/S.ace Engineers, Coimbatore-107

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.1.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR TAX CASE APPEAL NOS.125 AND 126 OF 2016 The Commissioner of Income Tax, Coimbatore ...Appellant Vs M/s.Ace Engineers, Coimbatore-107...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 29.4.2015 respectively inITA.Nos.55 and 56/Mds/2015 on the file of the Income TaxAppellate Tribunal Madras 'B' Bench respectively for theassessment years 2011-12 and 2012-13. against the orders dated17.11.2014 passed by the Commissioner of Income Tax (Appeals)-I,Coimbatore in Appeal No.392/13-14 and in Appeal NO.391/13-14against the Assessment orders dated 29.11.2013 passed by theIncome Tax Officer, Ward II(2) for the Assessment Years 2011-12and 2012-13. For Appellant : Mr.T.Ravikumar, SSCFor Respondent :Mr.S.SridharCOMMON JUDGMENT(Judgment was delivered by T.S.SIVAGNANAM,J) Heard the learned Standing Counsel for the appellant. 2. These appeals by the Revenue challenge the common orderpassed by the Income Tax Appellate Tribunal, which decided theissue in favour of the assessee. The appeals were admitted on08.3.2016 on the following substantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in deleting that Section 40(a)(ia) isapplicable only on those amounts 'payable'and not those amounts 'paid' during the yearwithout deducting tax at source ? And https://hcservices.ecourts.gov.in/hcservices/ ii. Whether, under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in followingAllahabad High Court judgment in the caseof Vector Shipping Services P. Ltd., whenthe facts of the present case aredistinguishable ?” 3. The Revenue seeks to withdraw these appeals on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, these appeals are dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event, in any of the cases, the tax effect is abovethe threshold limit fixed in the said circular under exceptionalclauses mentioned in the 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. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar RS To 1.The Income Tax Appellate Tribunal, Madras 'B' Bench. 2.The Commissioner of Income Tax (Appeals)-I,Coimbatore. 3.The Income Tax Officer,Ward II(2), Coimbatore. +1cc to Mr.S.Sridhar, Advocate, S.R.No.362+1cc to M/S.R.Hemalatha, Advocate, S.R.No.287 TCA.Nos.125 & 126 of 2016 SS(CO)CS/04/03/2019