THE COMMISSIONIER OF INCOME vs. M/S WHEELS INDIA LTD

TCA..Nos.451 & 454 /2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos. 451 & 454 of 2015 The Commissioner of Income Tax, Chennai .. Appellant in both appeals Versus M/s. Wheels India Ltd Padi, Chennai – 600 050.

.. Respondent in both appeals Tax Case Appeals filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras “C” Bench, Chennai, dated 26.09.2014 passed in respective ITA Nos.379 & 396/MDS/2014 in respect of respective Assessment Years 2007-08 and 2010- 2011. For Appellant : Mr. T.Ravikumar Standing Counsel For Respondent : Mr.Venkata Narayanan for M/s.Subburaya Aiyar 1/5 https://www.mhc.tn.gov.in/judis TCA..Nos.451 & 454 /2015 JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) These Tax Case Appeals have been filed by the appellant / revenue, questioning the correctness of the order dated 26.09.2014 passed by the Income Tax Appellate Tribunal Madras “C” Bench, Chennai in respective ITA Nos.379 & 396/MDS/2014 for the respective Assessment Years 2007-08 and 2010-2011. 2. On 28.07.2015 these tax case appeals were admitted by this Court on the following substantial questions of law; TCA.No.451 of 2015 ' i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the disallowance made on account of leave salary under Section 43B is to be allowed ignoring the amendment had been made as per Section 43(f)? ii) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the provident fund contribution on leave salary which was unpaid on the 2/5 https://www.mhc.tn.gov.in/judis TCA..Nos.451 & 454 /2015 date of filing of return is to be allowed under Section 43B? iii) Is not the finding of the Tribunal bad by granting relief to the assessee ignoring the statutory provisions contained in Section 43B (f)? TCA.No.454 of 2015: i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the disallowance made under Section 40(a)(i) in respect of sales commission paid to non resident without TDS is to be allowed? ii) Is not the finding of the Tribunal bad especially when the services rendered by the Agent falls within the ambit of Section 9(1)(vii) as per Explanation 2 to section 195 by Finance Act, 2012 with retrospective effect from 01.04.1992?” iii) Whether the Tribunal was right in holding that the disallowance of excess depreciation claimed made on UPS is to be allowed? iv) Is not the finding of the Tribunal bad by granting excess depreciation at 60% as against the normal depreciation of 15% on plant and machinery especially when UPS is to be considered as uninterrupted power supply equipments for all electrical appliances only.” 3/5 https://www.mhc.tn.gov.in/judis TCA..Nos.451 & 454 /2015 3. When the matters were 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 these appeals 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 appeals, wherein, the tax effect is said to be less than the monetary limit imposed, are dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. No costs. [R.M.D,J.] [M.S.Q., J.] 26.08.2022 msr

Index : Yes / No 4/5 https://www.mhc.tn.gov.in/judis TCA..Nos.451 & 454 /2015 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. The Deputy Commissioner of Income Tax, Large TaxPayer Unit, Chennai. 2. The Commissioner of Income Tax (Appeals) Larger Taxpayer Unit, Chennai. 3. The Income Tax Appellate Tribunal Madras “C” Bench, Chennai, T.C.A.Nos. 451 & 454 of 2015 26.08.2022 5/5 https://www.mhc.tn.gov.in/judis