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[Cites 2, Cited by 24]

Madras High Court

Commissioner Of Income Tax V vs M/S.Rpg Transmission Ltd on 28 August, 2019

Author: T.S.Sivagnanam

Bench: T.S.Sivagnanam, V.Bhavani Subbaroyan

                                                                                       TCA.No.340 of 2018


                                         In the High Court of Judicature at Madras

                                                       Dated : 28.08.2019

                                                            Coram :

                                      The Honourable Mr.Justice T.S.SIVAGNANAM
                                                         and
                                  The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN

                                              Tax Case Appeal No.340 of 2018

                      Commissioner of Income Tax V,
                      121, M.G. Road, Chennai.                                        ...Appellant

                                                               Vs

                      M/s.RPG Transmission Ltd.,
                      Infinity Towers, 2nd Floor,
                      Tower 'B', DLF City, Phase II,
                      Gurgeon - 122 002.
                      PAN: AABCS2191J                                                 ...Respondent

                            APPEAL under Section 260A of the Income Tax Act, 1961 against the order
                      dated 12.06.2014 made in ITA.No.2090/MDS/2013 on the file of the Income Tax
                      Appellate Tribunal, Chennai 'C' Bench for the assessment year 2006-07.
                                    For Appellant       : Mr.Karthik Ranganathan, SSC assisted by
                                                          Mr.S.Rajesh, SC
                                    For Respondent      : Mr.R.Venkataraman
                                                          for M/s.Subbaraya Aiyar Padmanabhan

                                                      JUDGMENT

(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.Karthik Ranganathan, learned Senior Standing Counsel, assisted by Mr.S.Rajesh, learned Standing Counsel appearing for the 1/4 http://www.judis.nic.in TCA.No.340 of 2018 appellant/revenue and Mr.R.Venkataraman, learned counsel for M/s.Subbaraya Aiyar Padmanabhan, learned counsel appearing for the respondent/assessee.

2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 12.06.2014 made in ITA.No.2090/MDS/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2006-07.

3.The appeal has been filed by raising the following substantial question of law :

“Whether the Appellate Tribunal is right in holding that the disallowance u/s.40(a)(ia) of the Income Tax Act cannot be made on short deduction of tax at source?"

4.The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit.

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http://www.judis.nic.in TCA.No.340 of 2018

5.In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial question of law framed is left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs.

                                                                            (T.S.S.J.)    (V.B.S.J.)
                                                                                  28.08.2019
                      cse
                      Speaking (or) Non Speaking Order
                      Index : Yes (or) No

                      To

                      1.M/s.RPG Transmission Ltd.,
                      Infinity Towers, 2nd Floor,
                      Tower 'B', DLF City, Phase II,
                      Gurgeon - 122 002.

2.The Income Tax Appellate Tribunal, Chennai 'C' Bench.

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http://www.judis.nic.in TCA.No.340 of 2018 T.S.SIVAGNANAM,J.

AND V.BHAVANI SUBBAROYAN,J.

cse TCA.No.340 of 2018 28.08.2019 4/4 http://www.judis.nic.in