Commissioner Of Income Tax-Ii, v. M/S.Raman & Raman Automobiles

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATE: 19.02.2021

CORAM:

THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.390 of 2011 Commissioner of Income Tax - II, Tiruchirapalli ... Appellant Vs.

M/s.Raman & Raman Automobiles Ltd., 48, Thiruvidaimarudur Road, Kumbakonam.

... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, "D" Bench, dated 30.03.2011 in I.TA.No.563/Mds/2010, Assessment Year 2006-07, against the order of the Commissioner of Income Tax(Appeals) in ITA.No.364 of 2008-09, dated 01.02.2010 in G.I.No./PAN.No.AACCR7263F for the Assessment year 2006-07 against the proceedings of the Assistant Commissioner of Income Tax, Circle -I, Kumbakonam, dated 24.12.2008. For Appellant : Ms.V.Pushpa Standing Counsel For Respondent : Mr.R.Sivaraman for M/s.C.V.Rajan

JUDGMENT

(Judgment was delivered by M.DURAISWAMY, J.) We have heard Ms.V.Pushpa, learned Standing Counsel for the appellant/Revenue and Mr.R.Sivaraman, learned counsel for the respondent/assessee.

2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) are directed against the order dated 30.03.2011 made in I.TA.No.563/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai, "D" Bench (for brevity, the Tribunal) for the Assessment Years 200607. 3.The appeal was admitted on 28.09.2011 on the following substantial questions of law:

"1)Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was https://hcservices.ecourts.gov.in/hcservices/

right in holding that the assessee had no liability to deduct tax at source on the payments made to the transport contractors who transported the tractors to the assessee's premises on the irrelevant ground that the payments were made at the instance of M/s.Mahindra & Mahindra, the suppliers of the tractors and in deleting the disallowance made under Section 40(a)(ai) of the Act of Rs.11,35,942/-?

2)Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that amendment to Section 194 C made by the Finance Act 2009 was retrospective in effect and since the transport contractors had furnished the PAN and the payments were made by Account Payee cheques, no tax was to be deducted at source?" 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 Effect in terms of Circular No.17/2019 dated 08.08.2019 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 these cases are less than the threshold limit.

5.In the light of the said submissions, the above Tax Case Appeal is dismissed as withdrawn on account of the Low Tax Effect. The substantial questions of law framed are left open. In the event the tax effect in these cases 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. Sd/- Assistant Registrar (CS.VI) /True Copy/ Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai, "D" Bench. 2.The Assistant Commissioner of Income Tax, Circle I, Kumbakonam. 3.The Commissioner of Income Tax(Appeals), No.44, Williams Road, Cantonment, Tiruchirappalli -620001. +1cc to Mr.M.Swaminathan, Advocate SR.NO..10246 AKM/17.03.21/ 2P-5C/ T.C.A.No.390 of 2011 19.02.2021 https://hcservices.ecourts.gov.in/hcservices/