COMMISSIONER OF INCOME TAX vs. M/S WINBRO LOGISTICS PVT LTD

T.C.A.No.603 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.603 of 2018 The Commissioner of Income Tax, Company Circle III, Chennai. ... Appellant Versus M/s. Winbro Logistics Private Limited, 2nd Floor, No.2, Krishnan Koil Street, Parrys, Chennai 600 001. PAN: AAACW 6500 G ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 31.12.2015 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.527/Mds/2014. For Appellant : Mr.M.Swaminathan, Senior Standing Counsel Page 1/5 https://www.mhc.tn.gov.in/judis T.C.A.No.603 of 2018 Mrs.V.Pushpa, Standing Counsel

JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 31.12.2015 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.527/Mds/2014, relating to the assessment year 2008-09.

2.By order dated 15.11.2018, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether the Tribunal was right in holding that only the outstanding amount of contract expenditure payable without TDS as on 31st March of the account of the year will be applied for disallowance under Section 40(a)(ia) of the Income Tax Act? And (ii) Whether the Tribunal was right in deleting the disallowance of entire sum of freight and transport payments paid or payable during the previous year under Section 40(a)(ia) for non remittance of TDS within the due date of filing of return of Income?" 3.When the matter was taken up for consideration, the learned counsel Page 2/5 https://www.mhc.tn.gov.in/judis T.C.A.No.603 of 2018 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 appeal 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 question of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 18.08.2022

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Index : Yes / No av Page 3/5 https://www.mhc.tn.gov.in/judis T.C.A.No.603 of 2018 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “B” Bench, Chennai. 2. The Commissioner of Income Tax, Company Circle III, Chennai.