Commissioner Of Income Tax – I,Chennai v. M/S.foster Wheeler India P. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 17.08.2021 THE HON'BLE MR.JUSTICE T.S.SIVAGNANAMAND THE HON'BLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.No.152 of 2011 Commissioner of Income Tax – I,Chennai....Appellant Vs. M/s.Foster Wheeler India P. Ltd.No.184-187, 9[th] Floor, Temple StepsAnna Salai, Little Mount,Chennai – 600 015....Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 16.11.2010 in I.T.A.No.1126/Mds/2010,Assessment Year 2002-03 as against the order of Commissioner ofIncome Tax (Appeals)-III, Chennai-34 dated 07.04.2010 made inITA.No.423/05-06/A-III and against the order of the DeputyCommissioner of Income Tax company Circle II(1), Chennai–34dated 22.09.2005 in G.I.No.AAACF3204C for the Assessment year2002-2003. For Appellant : Mr.T.Ravi Kumar Senior Standing CounselFor Respondent : Ms.Sri Niranjani Srinivasan for M/s.G.Baskar J U D G M E N T (Judgment was delivered by T.S. SIVAGNANAM, J.) We have heard Mr.T.Ravi Kumar, learned Senior StandingCounsel for the appellant/Revenue and Ms.Sri NiranjaniSrinivasan, learned counsel appearing for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (“the Act” for brevity) is directed againstthe order dated 16.11.2010 made in I.T.A.No.1126/Mds/2010 on thefile of the Income Tax Appellate Tribunal, Chennai, “B” Bench(“the Tribunal” for brevity) for the Assessment Year 2002-03. https://hcservices.ecourts.gov.in/hcservices/ substantial question of law:“Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that no penalty under Section 271AAcould be levied merely because the Transfer PricingOfficer had not made any adjustments in respect ofinternational transactions?” 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 on account of the Low Tax Effect. Thesubstantial question of law framed is left open. In the eventthe tax effect in this case is above the threshold limit fixedin the said Circular, liberty is granted to the Revenue tomake a mention to this Court to restore the appeal to be heardand decided on merits. No costs. mkn +1cc to Mr.T.Ravikumar, Sr.Standing Counsel, S.R.No.41564+1cc to M/s.G.Baskar, Advocate, S.R.No.41203 AJS(CO)RGA(16/09/2021)