TEH COMMNSR OF INCOME TAX vs. M/S.COSMO GLOBAL LTD

TCA.No.874 of 2018 In the High Court of Judicature at Madras Dated : 28.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.874 of 2018 The Commissioner of Income Tax, Chennai. ...Appellant Vs M/s.Cosmo Global Ltd., Old No.5, New No.17, 1st Floor, Apex Plaza, Nungambakkam High Road, Chennai - 600 034. PAN: AAACT82018 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 12.06.2018 made in ITA.No.2845/Chny/2017 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2013-14. For Appellant : Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSC For Respondent : Mr.R.Sivaraman 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 appellant/revenue and Mr.R.Sivaraman, learned counsel appearing for the respondent/assessee. 1/4 http://www.judis.nic.in TCA.No.874 of 2018 2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 12.06.2018 made in ITA.No.2845/Chny/2017 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2013-14. 3.The appeal was admitted on 03.12.2018 on the following substantial questions of law : “i.Whether the Tribunal was right in holding that the belated payments of employees' contribution made on account of PF and ESI dues are allowable as deduction under Section 36(1)(va) of the Income Tax Act? ii.Whether the Finding and reasoning of the Tribunal is correct especially when, as per Section 36(1)(va) read with Section 2(24)(x), the belated payment of PF/ESI contributions made beyond the due dates prescribed under the respective Acts would become the income of the assessee? iii.Whether the Tribunal was right in holding that the payment made to non resident translators would not fall within the scope of fees for technical, managerial or consultancy services as described in Explanation 2 of Section 9(1)(vii) of the Income Tax Act? and iv.Whether the Tribunal was right in deleting the disallowance made under Section 40(a)(ia) as no TDS was effected especially when technical services like translating would fall within the meaning of Explanation 2 to Section 9(1) of the Act?" 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.874 of 2018 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.) 28.08.2019 cse Speaking (or) Non Speaking Order Index : Yes (or) No To 1.M/s.Cosmo Global Ltd., Old No.5, New No.17, 1st Floor, Apex Plaza, Nungambakkam High Road, Chennai - 600 034. 2.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 3/4 http://www.judis.nic.in TCA.No.874 of 2018 T.S.SIVAGNANAM,J. AND V.BHAVANI SUBBAROYAN,J. cse TCA.No.874 of 2018 28.08.2019 4/4 http://www.judis.nic.in