Commissioner Of Income Tax, Chennai v. M/S.celebrity Fashion Ltd., Sdf-Iv, 3Rd Main Road, Mepz-Sez, Tambaram, Chennai - 600 045

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.561 of 2015 Commissioner of Income Tax,Chennai. ...AppellantVs M/s.Celebrity Fashion Ltd.,SDF-IV, 3rd main road,MEPZ-SEZ, Tambaram, Chennai - 600 045.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 27.08.2013 made in ITA.No.1250/MDS/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2009-10 against the order dated 27/02/2013made in ITA.No.682/11-12/A-III on the file of the Commissionerof Income Tax(A) III, Chennai against the order dated 29/12/11vide PAN/GIR AAA CC3696D on the file of the AssistantCommissioner of Income Tax, Company Circle-1(3), Chennai-34 For Appellant : Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSCFor 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 StandingCounsel, and Ms.R.Hemalatha, learned Senior Standing Counselappearing for the appellant/revenue and Mr.A.S.Sriraman, learnedcounsel for Mr.S.Sridhar, learned counsel appearing for therespondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated27.08.2013 made in ITA.No.1250/MDS/2013 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2009-10. https://hcservices.ecourts.gov.in/hcservices/ 3.The appeal was admitted on 23.07.2015 on the followingsubstantial questions of law : “i) Whether on the facts and circumstances of the case, theIncome Tax Appellate Tribunal was right in allowing thededuction of expenses incurred by the assessee towardsoverseasselling commissin when the assessee had failed to deducttax at source under Section 195 on the same? ii) Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wascorrect in not considering the effect of Explanationto Section 9 inserted by Finance Act, 2010 wherebyincome received by a non-resident for technicalservices is deemed to accrue in India irrespectiveof whether the non-resident has an establishment inthe country and whether the non-resident hadrendered the service outside India or India? iii) Whether in the facts and circumstances ofthe case, the Tribunal was right in allowing thededuction of swap loss incurred by the assessee onspeculative transactions as a business loss? iv) Whether in the facts and circumstances ofthe case, the Tribunal was right in overlooking thefact that the forward contract entered into by theassessee and ultimately ending in loss were settledwithout physical delivery and therefore fell withinthe scope of Section 45(a) of the Income Tax Act?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 Crore.It is further submitted that the tax effect in this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention to https://hcservices.ecourts.gov.in/hcservices/ this Court to restore the appeal to be heard and decided onmerits. No costs. -s/d- Assistant Registrar(CJ Conf) True Copy Sub-Assistant Registrar cseTo 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention to https://hcservices.ecourts.gov.in/hcservices/ this Court to restore the appeal to be heard and decided onmerits. No costs. -s/d- Assistant Registrar(CJ Conf) True Copy Sub-Assistant Registrar cseTo 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax (A)-IINo.121 Mahatma Gandhi RoadGandhi Raod, Chennai-343.The Assistant Commissioner of Income-TaxCompany Circle-1(3)Chennai-34+1 cc to Mr.S.Sridhar Advocate sr74513TCA.No.561 of 2015nrl(co)aa14/10/2019