Commissioner Of Income Tax, Chennai v. M/S.mainetti India Pvt. Ltd., 3[Rd] Floor, Florida Towers

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 06.07.2021 CORAMTHE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R. HEMALATHA T.C.A.No.277 of 2012 Commissioner of Income Tax,Chennai.... Appellant/RespondentVs. M/s.Mainetti India Pvt. Ltd.,3[rd] Floor, Florida Towers,138/30, Nelson Manickam Road,Chennai – 600 029.... Respondent/Appellant Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 16.03.2012 in I.TA.No.1789/Mds/2011,Assessment Year 2007-08 and Against the office of The Income Tax Department DisputeResolution Panel (DRP) Chennai, Aayakar Bhavan, 121,NungambakkamHighRoad,Chennai-34andmadeinF.No.DRP/Chennai/Sectt/016/2011-2012 date of Duration 19/08/2011and against the office of the Assistant Commissioner of IncomeTax Company Circle IV(1), Chennai and made in PAN.No.AAACM68694Mdate of under 27/09/2011 for the Assessment year 2007 to 2008. For Appellant : Mr.Karthik RanganathanSenior Standing CounselFor Respondent : Mr.R.Sivaraman We have heard Mr.Karthik Ranganathan, learned SeniorStanding 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 theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 16.03.2012 made in I.TA.No.1789/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai, “B” Bench https://hcservices.ecourts.gov.in/hcservices/ (for brevity, the Tribunal) for the Assessment Year 2007-08.3.The appeal was admitted on 24.09.2012 on the followingsubstantial questions of law: “1.Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunalwas correct in holding that the deduction underSection 10AA of the Income Tax Act, 1961 isallowable after the inclusion of the foreignexchange gain or loss to the export turnover? 2.Whether under the facts and circumstancesof the case, the Income Tax Appellate Tribunalwas correct in holding that the Arm's LengthPrice should be determined after taking intoaccount the net effect of the purchase and saleof the goods between the Associate and NonAssociated Enterprises?” 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 08.08.2019 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 as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar(CS IX) //True Copy// mkn 1. The Income Tax Appellate Tribunal, Chennai, “B” Bench 2. The Dispute ResolutionPariel (DRP) Income Tax Department, Chennai-34. Income Tax Department, Chennai-34. 3. The Commissioner of Income Tax, Chennai. Chennai. 4. The Assistant Commissioner of Income Tax, Company Circle IV(1), Chennai. Company Circle IV(1), Chennai. RR(CO)HS(29/07/2021) T.C.A.No.277 of 2012