M/S EDAC ENGINEERING LIMITED vs. THE ASSISTANT COMMISSIONER O

TCA.Nos.740 and 741 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.10.2020 CORAM: THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE Mrs.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.740 and C.M.P.No.21398 of 2019 and Tax Case Appeal No. 741 of 2019 M/s Edac Engineering Limited SPIC House, Old No.88, AnnaSalai, Guindy, Chennai - 600 032 .. Appellant in both the appeals Vs. The Assistant Commissioner of Income Tax, Company Circle - V (1), Income Tax Department, 121, Nungambakkam High Road, Chennai - 600 034 .. Respondent in both the appeals Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961, against the order made in ITA No.153/Mds/2013 & CO No.58/MDS/2013 dated 10.06.2013 passed by the Income Tax Appellate Tribunal, 'D' Bench, Chennai for the Assessment Year 2008-2009. For Appellant : Mr.A.S.Sriraman 1/5 http://www.judis.nic.in TCA.Nos.740 and 741 of 2019

For Respondent : Ms.R.Hemalatha Senior Standing Counsel 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 assessee 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 'D' Bench, Chennai in ITA No.153/Mds/2013 and CO No.58/MDS/2013 dated 10.06.2013 for the Assessment Year 2008-2009. 2. The assessee has raised the following Substantial Questions of Law for consideration: “1. Whether the Appellate Tribunal is correct in law in accepting the plea of the respondent on the applicability of Section 40 (a) (i) of the Act for making the disallowance of the claim of sub contractor's payments in the computation of taxable total income without appreciating the distinction of the term 'paid' and 'payable' inasmuch as the provisions of section 40(a)(i) of the Act would get attracted to the sum remaining outstanding in the books of the appellant, shown as payable without TDS as per section 194C of the Act and not to the actual payments? 2/5 http://www.judis.nic.in TCA.Nos.740 and 741 of 2019 2. Whether the Appellate Tribunal is correct in Law in concluding the applicability of section 40(a)(i) of the act to the sub-contractor's payments without TDS even though the provisions governing section 194C of the Act had no application to such payments on the factual matrix of the case? 3. Whether the Appellate Tribunal is correct in Law in restricting the scope of the appeal before the CIT (Appeals) while rendering decision in restoring the matter back to his file even though the interpretation of section 40(A)(i) of the Act was continuously evolved by various judicial precedents subsequently? 3. We have heard Mr.A.S.Sriraman, learned counsel for the appellant / assessee and Ms.R.Hemalatha, learned senior standing counsel for the respondent / assessee. 4. When the matter is taken up today, the learned counsel for the appellant has drawn our attention to the memo filed by him dated 15.10.2020, wherein it has been stated that the learned counsel has been instructed to seek relief of this Court for withdrawal of the above tax case appeals filed by the assessee challenging the order passed by the Tribunal. The memo dated 15.10.2020 is placed on record and the 3/5 http://www.judis.nic.in TCA.Nos.740 and 741 of 2019 appeals filed by the assessee are dismissed as withdrawn. Consequently, the substantial questions of law are left open and connected miscellaneous petition is closed. No costs. [T.S.S.J.,] [V.B.S.J.,] 15.10.2020 Internet: Yes Speaking Judgment / Non speaking Judgment ssd To The Income Tax Appellate Tribunal, 'D' Bench, Chennai 4/5 http://www.judis.nic.in TCA.Nos.740 and 741 of 2019 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J ssd Tax Case Appeal No.740 and C.M.P.No.21398 of 2019 and Tax Case Appeal No. 741 of 2019 15.10.2020 5/5 http://www.judis.nic.in