The Commissioner Of Income Taxcircle Iii, Chennai v. M/S.chandiya Chemicals

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 10.1.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.995 of 2009 The Commissioner of Income TaxCircle III, Chennai. ...Appellant Vs. M/s.Chandiya Chemicals,4/349, Old Mahabalipuram Road,Oggiyam Thuraipakkam, Chennai-96. ...Respondent Prayer:- Tax Case Appeal filed under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, Madras 'A' Bench, Chennai, dated 21.11.2008made in ITA No.274/Mds/2008 preferred against the order of theCommissioner of Income Tax (Appeals) VIII, Chennai made inITA.018/2005-06, dated 27.11.07 preferred against the order ofthe Assistant Commissioner of Income Tax Officer, Circle III,Chennai dated 17.03.05 for the Assessment Year 2002-03 made inPAN:AAAFC1895K. For Appellant : Mr.T.R.Senthilkumar Senior Standing Counsel For respondent : No appearance. This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'A' Bench, Chennai, dated 21.11.2008made in ITA No.274/Mds/2008, by raising the followingsubstantial question of law: https://hcservices.ecourts.gov.in/hcservices/ "When a partner in the assessee firm is also apartner in the sister concern which receivecommission year after year, attracts section 40A(2),(b) of the Income Tax Act or not?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. ssk. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar To 1. The Commissioner of Income Tax (Appeals)VIII Circle III, Chennai. 2. M/s.Chandiya Chemicals, 4/349, Old Mahabalipuram Road, Oggiyam Thuraipakkam, Chennai-96. 3. The Assistant Commissioner of Income Tax, Circle III, Chennai 34. 4. The Income Tax Appellate Tribunal, Madras 'A'Bench, Chennai. +1cc to Mr.T.R.Senthil Kumar, Advocate, Vide SR.NO.2947/19 TCA No.995 of 2009 ssv(co)kak(01/03/2019)