Commissioner Of Income Tax, Coimbatore v. M/S.flow Link Systems P Ltd

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAM The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Commissioner of Income Tax,Coimbatore. ...Appellant/AppellantVsM/s.Flow Link Systems P Ltd.,189/1A-Ac Uthupalayam,Avinashi Road, Arasur,Coimbatore-641 047....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 09.01.2014 made in ITA No.1471/Mds/2009 on thefile of the Income-tax Appellate Tribunal 'D' Bench, Chennai forthe assessment year 2004-05 against the order dated 05.06.2009made in I.T.A. No. 61.2007-2008 I.T.A. TR. No. 414/2006-2007 onthe file of the Commissioner of Income Tax (Appeals) XI, Chennai34 for the assessment year 2004-2005.against the order dated 28.12.2006 made in PAN/GIR No. on the file of the Joint Commissioner of Income Tax,Tirupur Range, Tirupur. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counselassisted by Ms.K.G.Usha Rani,Junior Standing Counsel Judgment was delivered by T.S.Sivagnanam,J. We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel assisted by Ms.K.G.Usha Rani, learned Junior StandingCounselappearingfortheappellant-RevenueandMr.R.Vijayaraghavan, learned counsel for the respondent-assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated09.01.2014 made in I.T.A. No.1471/Mds/2009 on the file of theIncome-tax Appellate Tribunal 'D' Bench, Chennai for theassessment year 2004-05. 3. The appeal was admitted on 18.08.2014 on the followingsubstantial questions of law :“1. Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal is right in holding thecomputation of the ALP of the assessee shallbe reworked, by treating the difference inprofit margin as nil and accordingly anyupward revision cannot be sustained formaking addition towards increase in incomebased on the determination of the ALP?2. Whether under the facts andcircumstances of the case, the Income TaxAppellate Tribunal is right in holding thatthe transactions of the assessee with its AEare at arms length?3. Whether based on material availablebefore it, the Tribunal could have arrivedat conclusion that the transactions of theassessee with its AE are at arms length?” 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 tothis Court to restore the appeal to be heard and decided onmerits. s/d- Assistant Registrar True Copy Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals)XIChennai 34.Chennai 34. 3.The Joint Commissioner of Income Tax,Tirupur RangeTirupurTirupur RangeTirupur TCA.No.560 of 2014LN(CO)SP(04/08/2020)