PRINCIPAL COMMISSIONER OF IN vs. M/S.ENRICA ENTERPRISES PVT L

TCA.Nos.289 and 290 of 2020 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12.10.2020 CORAM: THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE Mrs.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.289 and 290 of 2020 and C.M.P.No.9645 of 2020 The Principal Commissioner of Income Tax, Puducherry, D.P.Thottam, Muthialpet, Puducherry - 605 003 .. Appellant in both the appeals Vs. M/s Enrica Enterprises Pvt., Ltd., No.85, Matru Vazhi Salai, [By pass Road] Poonamallee, Chennai - 600 056 .. Respondent in both the appeals Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961, against the order made in ITA Nos.1805/Chny/2018; 1806/Chny/2018 dated 09.01.2019 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai for the Assessment Years 2014-2015 and 2015-2016 respectively. For Appellant : Mr.J.Narayanaswamy Senior Standing Counsel

1/6 http://www.judis.nic.in TCA.Nos.289 and 290 of 2020 For Respondent : Mr.Ashokpathy C O M M O N J U D G M E N T [Common Judgment of the Court was delivered by T.S.SIVAGNANAM, J.] These appeals, at the instance of the revenue filed under Section 260A of the Income Tax Act, 1961 (the 'Act' for brevity), are directed against the orders passed by the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai in ITA Nos.1805/Chny/2018 and 1806/Chny/2018 dated 09.01.2019 for the Assessment Years 2014-2015 and 2015-2016. 2. The following Substantial Questions of Law were raised for consideration in these appeals: “1. Whether the Appellate Tribunal is correct in law in holding that no disallowance could be made on account of the assessee paying royalty amount without TDS? 2. Whether the ITAT is correct in law in holding that the proviso [i] to [iii] of Sec 201[1] of the Income Tax Act and the requirement of furnishing of certificate in Form 26A are independent, and both are to satisfied for an assessee to be treated as an assessee not in default in terms of the provisions of section 201[1] of the Act? 3. Whether the Appellate Tribunal was right in relying upon the certificate in Form No.26A without 2/6 http://www.judis.nic.in TCA.Nos.289 and 290 of 2020 considering the fact that all the three clauses of Section 201(1) should be satisfied for considering the assessee not in default for non-deduction of tax as required under Chapter XVIIB of the Income Tax Act?" 3. We have heard Mr.J.Narayanasamy, learned senior standing counsel for the appellant / revenue and Mr.Ashokpathy, learned counsel for the assessee. 4. The learned senior standing counsel for the appellant, on instructions, submitted that the grounds raised before this Court, has now been raised by the revenue before the Tribunal by way of Miscellaneous Petitions in I.T.A.Nos.1805/Chny/2008 and 1806/Chny/2018 and the same are pending. Therefore, the revenue seeks to canvass the case first before the Tribunal and in the event, they are unsuccessful, they would approach this Court. 5. In the light of the same, the Tax Case appeals are closed, substantial questions of law are left open. Liberty is granted to the revenue to challenge the impugned order dated 09.01.2019 as well as the order that may be passed in the miscellaneous petitions filed before them. In the 3/6 http://www.judis.nic.in TCA.Nos.289 and 290 of 2020 event, revenue is unsuccessful, this observation is made because, if the revenue is unsuccessful before the Tribunal, they would be required to file two appeals, for each of the assessment year, one challenging the order dated 09.01.2019 impugned in these appeals and another appeal is against the order in the miscellaneous petitions. In such event, this observation would come to the aid of the revenue while explaining the delay that may occasion in filing such appeals. 6. Furthermore, we are inclined to close the appeals, because the revenue cannot maintain parallel proceedings both before the Tribunal as well as before this Court on the same issue and we also find that if the facts are involved, the revenue will be well advised to agitate the same before the Tribunal. Furthermore, we also note the submission of Mr.J.Narayanasamy, learned senior standing counsel for the revenue that the revenue is assailing before the Tribunal because the grounds raised by the revenue were not considered. Consequently, connected miscellaneous petition is closed. No costs. [T.S.S.J.,] [V.B.S.J.,] 12.10.2020 Internet: Yes Speaking Judgment / Non speaking Judgment ssd 4/6 http://www.judis.nic.in TCA.Nos.289 and 290 of 2020 To The Income Tax Appellate Tribunal, 'A' Bench, Chennai 5/6 http://www.judis.nic.in TCA.Nos.289 and 290 of 2020 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J ssd Tax Case Appeal Nos.289 and 290 of 2020 and C.M.P.No.9645 of 2020 12.10.2020 6/6 http://www.judis.nic.in