COMMISSIONER OF INCOME TAX vs. G.MANIMEGALAI

TCA.No.14 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 14 of 2017 Commissioner of Income Tax, Non Corporate Circle – 10(1), Chennai

.. Appellant Versus Smt. G. Manimegalai, Proprietor M/s. Hitech Diagnostic Centre, No.1, Millers Road, Kilpauk, Chennai 600 010.

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal “C” Bench, Chennai, dated 29.06.2016 passed in I.T.A.No.2146/MDS/2015 in respect of assessment year 2007-08. For Appellant : M/s.M. Swaminathan &

V. Pushpa Standing Counsel For Respondent : Mr.Hari Shankar Mani

1/4 https://www.mhc.tn.gov.in/judis TCA.No.14 of 2017 JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 29.06.2016 passed by the Income Tax Appellate Tribunal “C” Bench, Chennai, in I.T.A.No.2146/MDS/2015 for the assessment year 2007-08. 2. On 24.01.2017, this tax case appeal is admitted by this Court on the following substantial questions of law; ' 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in deleting the additions made under section 40(a)(ia) in respect of the expenses debited to the Profit and Loss Account on which tax was not deducted at source under section 194 and not remitted within the due date? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provisions of Section 40(a)(ia) of the Income Tax Act are applicable only to the amounts of expenditure which are payable as on 31st March of the relevant previous year and it cannot be invoked to disallow expenditure which had been actually paid during the previous year, without deduction of tax at source?” 2/4 https://www.mhc.tn.gov.in/judis TCA.No.14 of 2017 3. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. [R.M.D,J.] [M.S.Q., J.] 22.08.2022 msr

Index : Yes / No 3/4 https://www.mhc.tn.gov.in/judis TCA.No.14 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. The Deputy Commissioner of Income Tax, Non Corporate Circle 10(1), Chennai. 2. The Commissioner of Income Tax (Appeals)-12 Chennai 3. The Income Tax Appellate Tribunal “C” Bench, Chennai T.C.A.No. 14 of 2017 22.08.2022 4/4 https://www.mhc.tn.gov.in/judis