Commissioner Of Income Tax-I,Chennai v. M/S.dart Global Logistics P. Ltd.chennai-35

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.1.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM AND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR TAX CASE APPEAL NO.65 OF 2011 Commissioner of Income Tax-I,Chennai ...Appellant Vs ...Respondent M/s.Dart Global Logistics P. Ltd.Chennai-35 APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 19.7.2010 in ITA No.653/Mds/2010 on thefile of the Income Tax Appellate Tribunal Madras 'A' Bench forthe assessment year 2006-07 against the order of theCommissioner of Income Tax (Appeals) - III, Chennai order dated15/02/2010 made in ITA No.142/08-09/A-III for the AssessmentYear 2006-07 and against the order of the Income Tax Officer(OSD)CompanyCircle-I(4),ChennaimadeinP.A/GIR.No.AAACD3181G order dated 28.11.2008.For Appellant :Mr.T.Ravikumar, SSCFor Respondent :Mr.R.Sivaraman Judgment was delivered by T.S.SIVAGNANAM,J Heard the learned Senior Standing Counsel for the appellant.2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 01.3.2011 onthe following substantial question of law : “Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in deleting thedisallowanceoftheexcessiveand https://hcservices.ecourts.gov.in/hcservices/ unreasonable marketing fee paid as perSection 40A(2)(a) to the specified/relatedcompany as mentioned in Section 40A(2)(b)?” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial question of law framed is leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. No costs. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar To1. The Income Tax Appellate Tribunal, Madras 'A' Bench, Vhennai - 34. 2. The Commissioner of Income Tax (Appeals)-III, No.121,Mahatma Gandhi Road, Chennai - 34. 3. The Income Tax Officer (OSD), Company Circle - I(4), Chennai. +1cc to Mr.R.Sivaraman, Advocate, S.R.No.1107+1cc to Mr.R.Hemalatha, Advocate, S.R.No.280TCA.No.65 of 2011