The Commissioner of Income-tax, Chennai v. Mainetti (India) P Ltd
[Citation -2020-LL-0805]
| Citation | 2020-LL-0805 |
|---|---|
| Appellant Name | The Commissioner of Income-tax, Chennai |
| Respondent Name | Mainetti (India) P Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 05/08/2020 |
| Judgment | View Judgment |
| Keyword Tags | allowability of expenditure • deduction of tax at source • commission received • sales commission • commission paid • monetary limit • tax effect |
| Bot Summary: | This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, B Bench, Chennai, in I.T.A.No. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in deleting the disallowance of Rs.1,46,16,995/- debited by the assessee as commission paid to its group concern abroad 2. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in not considering explanation below sub-section of Section 9 introduced by Finance Act, 2010 with effect from 01.06.1976 3. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in not considering the fact that the overseas sales commission received by the assessee would come under the category of 'any other sum chargeable under the Income Tax Act, 1961' bringing it within the ambit of deduction of tax at source under Chapter - XlVII B of the Income Tax Act, 1961 4. Whether the non-compliance of the provisions relating to deduction of tax at source on overseas sales commission would be hit by the allowability of expenditure as per Section 40(a)(i) of the Act 5. When the matter is taken up for hearing, learned Standing Counsel brought to our notice the Circular issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, 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/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. |