THE COMMISSIONER OF INCOME vs. M/S. FARIDA SHOES P LTD

TCA.No.850 of 2015 In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.850 of 2015 The Commissioner of Income Tax, Chennai. ...Appellant Vs M/s.Farida Shoes P. Ltd., 17, Jalal Road, Ambur - 635 802. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 28.03.2014 made in ITA.No.190/Mds/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench for the assessment year 2005-06. For Appellant : Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSC For Respondent : Mr.A.S.Sriraman for Mr.S.Sridhar JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.Ravikumar, learned Senior Standing Counsel, and Ms.R.Hemalatha, learned Senior Standing Counsel appearing for the 1/4 http://www.judis.nic.in TCA.No.850 of 2015 appellant/revenue and Mr.A.S.Sriraman, learned counsel for Mr.S.Sridhar, learned counsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 28.03.2014 made in ITA.No.190/Mds/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench for the assessment year 2005-06. 3.The appeal was admitted on 25.11.2015 on the following substantial questions of law : “1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in deleting the disallowances made on account of commission paid to non-resident agent on the ground that the same has not accrued in India and Section 195 has no application? 2) Is not the finding of the Tribunal bad, since as per the Explanation inserted at the end of Section 9 by Finance Act, 2010 with retrospective from 01.06.1976 according to which income of the non-resident shall be deemed to have accrued or arisen in India under clauses (v), (vi) or clause (vii) of sub-section (1) and is to be included in the total income of the non-resident whether or not he is a resident or has a place of business connection in India or has rendered services in India?" 4.The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax 2/4 http://www.judis.nic.in TCA.No.850 of 2015 effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 5.In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs. (T.S.S.J.) (V.B.S.J.) 27.08.2019 cse Speaking (or) Non Speaking Order Index : Yes (or) No To 1.M/s.Farida Shoes P. Ltd., 17, Jalal Road, Ambur - 635 802. 2.The Income Tax Appellate Tribunal, Chennai 'A' Bench. 3/4 http://www.judis.nic.in TCA.No.850 of 2015 T.S.SIVAGNANAM,J. AND V.BHAVANI SUBBAROYAN,J. cse TCA.No.850 of 2015 27.08.2019 4/4 http://www.judis.nic.in