COMMISSIONER OF INCOME TAX vs. M/S.VSL INDIA PRIVATE LIMITED

T.C.A.Nos.660 & 661 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.Nos.660 & 661 of 2016 Commissioner of Income Tax, Company Circle III, Chennai. ... Appellant in both TCAs Versus M/s. VSL India Private Limited, No.36, Annai Indira Nagar, Old Mahabalipuram Road, Thuraipakkam, Chennai 600 096. PAN:AAACV 9694 E ... Respondent in both TCAs Appeals preferred under Section 260A of the Income Tax Act, 1961, against the order dated 01.02.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.Nos.1071 & 1702/Mds/2013. For Appellant : Mr.M.Swaminathan, Senior Standing Counsel Mrs.V.Pushpa, Standing Counsel in both TCAs For Respondent : Mr.Venkatanarayanan for M/s.Subbaraya Aiyar in both TCAs Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.660 & 661 of 2016

COMMON JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) These tax case appeals have been filed by the appellant / Revenue, challenging the common order dated 01.02.2016 passed by the Income Tax Appellate Tribunal, “A” Bench, Chennai, in I.T.A.Nos.1071 & 1702/Mds/2013, relating to the assessment years 2006-07 and 2007-08.

2.By order dated 01.09.2016, this court admitted the aforesaid tax case appeals on the following substantial questions of law: “(i)Whether on the facts and circumstances of the case, the Tribunal was right in deleting the disallowance made by the assessing officer under Section 40(a)(i) towards insurance cost accounted in the heads 'insurance Costs' and Insurance general'? (ii) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee was right in not deducting tax at source on its own, deciding that there is no element of taxable income in the amount paid to the foreign party, contrary to the judgment of the Hon'ble Supreme Court in the case of Transmission Corporation of Andhra Pradesh Ltd., (239 ITR 587)?" Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.660 & 661 of 2016 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.) 23.08.2022

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Index : Yes / No av Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.Nos.660 & 661 of 2016 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “A” Bench, Chennai. 2. The Commissioner of Income Tax, Company Circle III, Chennai. 3. The Assistant Commissioner of Income-tax, Company Circle - III(4), Chennai - 34.