The Commissioner Of Income Tax, Madurai v. M/S.theekathir Press Of Cpi(M),Madurai-18

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.8 of 2016 The Commissioner of Income Tax, Madurai...Appellant Vs M/s.Theekathir Press of CPI(M),Madurai-18....Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 29.5.2015 in ITA No.2727/Mds/2014 on thefile of the Income Tax Appellate Tribunal Madras 'C' Bench forthe assessment year 2010-11 against the order dated 28.08.2014in CIT(A) in I.T.A. 0064/2013-2014 in P.A. No. AAAAT3906B on thefile of the Office of the Commissioner of Income Tax (Appeals)IMadurai against the order dated 28.03.2013 in PAN/GIR. No. on the file of the Office of the Income Tax officer,Ward II(4) Range II, Madurai for the assessment year 2010-2011. For Appellant :Ms.V.Pushpa and Ms.S.Premalatha, JSCFor Respondent:Mr.Uttam Cheriyan Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 19.1.2016 onthe following substantial question of law : “Whether, on the facts and in thecircumstances of the case, the Tribunal wasright in law in holding that the provisionsof Section 40(a)(ia) of the Income Tax Actare applicable only to the amounts ofexpenditure, which are payable as on 31[st] https://hcservices.ecourts.gov.in/hcservices/ March of the relevant previous year and itcannot be invoked to disallow expenditure,which had been actually paid during theprevious year, without deduction of tax atsource ?” 3. The Revenue seeks to withdraw this appeal 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, the appeal is dismissed aswithdrawn and the substantial question of law framed is leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. To1. The Income Tax Appellate Tribunal, Madras 'C' Bench.2. The Commissioner of Income Tax(Appeals I) Madurai.3. The Income Tax officer Ward I(4) Range II, Madurai.+1 CC to Mr.M. Swaminathan, Advocate sr 57. SPD(CO)SP(28/01/2019)