Commissioner Of Income Tax Chennai-Iii v. M/S.macmillian India Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.11.2018 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.305 of 2009 Commissioner of Income Tax Chennai-III. Appellant Vs. M/s.Macmillian India Ltd.,No.21, Paullos Road, Chennai-2. Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai, dated 5.9.2008 made in ITANo.1961/Mds/2003, against the Order of the Commissioner ofIncome Tax (Appeals) in ITA.No. 68/2003 to 2004) dated25.07.2003 against the Assessment Order for the Assessment Year2000-2001 dated 25.03.2003 on the file of the AssistantCommisssioner of Income Tax Company Circle IV (1), Chennai-34. For Appellant : Mr.T.Ravikumar Senior Standing Counsel For respondent : Mr.Venkataraman for M/s.Subbaraya Iyer J U D G M E N T(Delivered by DR.VINEET KOTHARI,J) This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, Madras 'B' Bench, Chennai, dated5.9.2008 made in ITA No.1961/Mds/2003, by raising the followingsubstantial question of law: "Whether, on the facts and circumstances of thecase, the Appellate Tribunal was right in holdingthat the income of the assessee by way of subsidytowards printing cost, copyright fees and amountwritten back of excess provision of commissionpayable to executive directors made in the preceding https://hcservices.ecourts.gov.in/hcservices/ assessment year, constituted profits and exportbusiness and were eligible for deduction undersection 80HHC and Explanation (baa) to section80HHC of the Act would not be applicable to suchreceipts?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is less than themonetary limit imposed and therefore, the appeal is dismissed asnot pressed, preserving the substantial question of law fordetermination in an appropriate case. Sd/- Assistant Registrar(CS-VI) //True Copy// Sub Assistant Registrar TO 1.The Registrar, Income Tax Appellate Tribunal, Chennai Bench, 'B'Chennai. 2. The Commissioner of Income Tax (Appeals), Chennai. 3.The Assistant commissioner of Income Tax, Company Circle IV(1), Chennai-34. +1cc to Mr.Karthik Ranganathan, Advocate, S.R.No.81866 +1cc to Mr.Subbaraya Aiyar, Advocate, S.R.No.81303 TCA No.305 of 2009 PPA(CO)GN(09/01/2019) https://hcservices.ecourts.gov.in/hcservices/