Madras High Court
Commissioner Of Income Tax-Tds vs M/S. Nepc Communications Ltd on 28 November, 2016
Author: Nooty.Ramamohana Rao
Bench: Nooty.Ramamohana Rao, Anita Sumanth
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.11.2016 CORAM THE HON'BLE MR.JUSTICE NOOTY.RAMAMOHANA RAO AND THE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case (Appeal) No.439 of 2005 Commissioner of Income Tax-TDS, Chennai. ... Appellant Vs. M/s. NEPC Communications Ltd., 36, Wallajah Road, Chennai - 2. ... Respondent Tax Case Appeal filed under Sec. 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai, dated 23.08.2004 in ITA No.1025/Mds/98. For Appellant : Mr.J.Narayanaswamy Standing Counsel For Respondent : Mr.R.Sivaraman. **** JUDGMENT
(DELIVERED BY NOOTY.RAMAMOHANA RAO, J.) The Tax Case Appeal filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai, dated 23.08.2004 in ITA No.1025/Mds/98, has been admitted on 18.07.2005 for consideration of the following two substantial questions of law:
"(i) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the payments made to Shristhi Video Corporation Ltd., for providing uplink facility, dish antenna, decompressors for receiving signals from the transponders are in the nature of hire charges and not fee for technical services as per explanation 2 to Section 9(1)(vii) r/w Section 194J?
(ii) Whether on the facts and circumstances of the case, the Tribunal was right in deleting the levy of tax and interest under Section 201(1) and 201(1A)?
2. Though substantial questions of law do arise for consideration, however, the value involved in the appeal is far-too insignificant particularly viewed in the backdrop of the circular instructions passed on through Circular No.21/2015, dated 10.12.2015 by the Department.
3. It is now decided that an appeal shall not be filed in case where tax effect does not exceed Rs.20 lakhs. In the instant case, tax effect is less than the limit of Rs.20 lakhs prescribed in the said circular and hence, this appeal is not pressed rightly by the learned Standing counsel Mr.J.Narayanaswamy. Accordingly, the Tax Case Appal stands dismissed as not pressed, preserving the substantial questions of law for determination in an appropriate case. No cost.
(N.R.R.J.) (A.S.M.,J.)
28.11.2016
gr.
NOOTY.RAMAMOHANA RAO,J
and Dr.ANITA SUMANTH,J
gr.
T.C.A.NO.439 OF 2005
28.11.2016
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